New government starts waffling on foreign owned mines

Foreign miners in Zambia shouldn’t “lose sleep” about their investments because newly elected President Michael Sata won’t change mining and tax laws without consulting them, his party said today.

The Patriotic Front party is considering introducing a tax on copper exports, “but only when prices are higher than normal,” Sata spokesman Miles Sampa said today by phone.

Sata, known to his supporters as “King Cobra” because of his aggressive campaigning style, was sworn in yesterday, promising Zambia’s poor a greater share of the country’s wealth. While the 73-year-old leader has backed down on threats to nationalize foreign companies, he pledged to extract more money from miners in Africa’s biggest copper producer.

Bloomberg

 

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