Friday, September 5, 2014

Zambia abandons the emotive rule on copper exports

Zambia abandons the emotive rule on copper exports
From September 8th, the rule which instructs the companies to submit documents from destination countries in order to receive tax refunds, will be no longer required. This will end the cat fight over the 600 million dollars, gathered tax refunds, which have been a threat to Zambia’s mining industry.
The announcement was made just a few days after the chamber of mines notified that most of the copper mining companies in the country are facing a harsh financial crisis due to the blockage of tax refunds from the government, which is creating deficiencies in output and also alarming job cut offs in the country.
Ivan Glasenberg, the chief executive of Glencore stated that, the deduction would help to strengthen the company’s expectations to expand the company’s unit in Zambia. Glencore is planning an expansion worth 323 million dollars at the company’s Nkana copper mine, which would extend the lifetime up to a time period of 30 years.

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