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Tuesday, 18 May 2010

How the copper mines won, 2nd Edition

It has been a while since we last checked the the global copper prices. Another look confirms the general upward trend. We have long breached the copper price level at which President Mwanawasa introduced the windfall tax (in January 2008), with prices now oscillating between $7000 and $8000 per tonne. The windfall tax was designed to match rises in the price of copper: it was set at 25 percent while copper sold for $2.50 per pound, 50 percent for the next 50 cents and increased to 75 percent when copper fetched above $3.50 per pound.

Meanwhile, Ng'andu Magande has now firmly joined the "yes camp" as pressure continues to to grow on the Banda government to see sense on this life and death issue. The people want to see the Mwanawasa fiscal regime restored. As we continue to say, either we see change in this area or we all concede the mining companies are shamefully dribbling our people through state machinery.


  1. what is the current copper price per pound? not per tone please

  2. $ 3.0486 per lb

    Updated May-18-10 10:12 AM

  3. You can also check out the chart at

    Copper in pounds (7 day history - you can also select tonnes, and extend the chart's history back for a decade).

  4. for your information the official average for copper is :

    2007 : 3.23 $ per lb
    2008 : 3.15 $ per lb
    2009 : 2.34 $ per lb
    2010 : 3.16 $ per lb
    estimation 2011 : 3.36 $ per lb

    Quarter 2 2009 : 2.24 $ per lb
    Q3 2009 : 2.03 $ per lb
    Q4 2009 :3.02 $ per lb

    Q1 2010 : 3.29 $ per lb
    Q2 2010 : 3.29 $ per lb

  5. 'Zambian backflip provides warning' This was an article in yesterdays Wall Street Journal. It was basically advising the Australian Prime Minister Rudd of the perils of his intended introduction of a 40% windfall tax on mineral extraction profits. The article went as far as quoting Mines Minister Mwale and Finance Minister Musokotwane. What I dont understand is why the govt is on a campaign of misinformation. The closure of Luanshya mine and the suspension of production at Mopani had nothing to do with the introduction of the windfall tax. The real reason for their problems was the economic downturn in late 2008. After all with copper prices as low as they were the tax wouldnt have applied.
    Meanwhile Fred Bantubonse is also as usual performing his FOX News Channel mischaracterisations. Whereas a World Bank official was lamenting the peanuts Zambia was realising from her mining industry; Bantubonse was claiming that the mining companies have yet to make a profit. He has further that it was not true that the mines were not contributing anything. He pointed to 'Rates' and 'PAYE'as some of the 'contributions'. So countrymen when you get your next payslip be reminded that 'PAYE' you see on your slip has been paid by your employer. According to Bantubonse workers dont pay taxes employers do!


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