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Monday, 2 April 2012

Mine Watch (Various)

A number of recent mining watch stories.

Kansanshi Copper Mine profits have been soaring of late. In 2011 it recorded a 19 per cent increase in gross profit as compared to the 2010 figures, mainly due to the high copper prices that occurred throughout the year. According to financial and production results it raked US$1.2 billion profit as compared to US$ 998.4 million, was recorded in 2010.

The much anticipated Trident project appears to be taking shape. Investment is now projected at $2.4bn up from the $1bn. Zambia has seen large promises of new investment fail to materialise (who remembers the great Zhongui Mining Group project which promised to deliver 34,000 jobs?), but this indeed looks like the real deal.

Konkola Copper Mines (KCM) has invested at least K2.5 billion in the sustainable livelihood enhancement project for four communities in Chililabombwe. The project’s objective is to improve household food security for 80 per cent of the 360 targetted families and increase income by at least 50 per cent through sale of agricultural products, among others.

The Government has now categorically stated that it will not reintroduce a mining windfall tax. Alexander Chikwanda has gone as far as to call those who agitate for reintroduction of the windfall tax as lunatics, which presumably includes this long list of prominent people, including many members of the Government.

Finally, the suspension on the issuance of new mine licences has been lifted.  Mines Minister Christopher Yaluma said the issuance of all "non-mining rights" such as prospecting would resume with immediate effect as well as those for small-scale and artisinal mining, with the ban remaining on new permits for larger mining operations and mineral processing.

1 comment:

  1. The issue of Windfall tax is delicate one and that if we want to risk losing the investments already accrued in the mining sector, then Govt can go ahead and introduce the tax. To protect the existing investments, government come with a loyalty tax of 6%. This is better than nothing at all. In as much as we want to gain a lions share, we need to keep an open dialogue to see more corporate incentives by mine owners in social and environmental as well economical matters in the mining towns.



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