Finance Minister Alexander Chikwanda

Barrick will not pull out of Lumwana

Barrick Gold Corporation of Canada will after all not pull out from Lumwana in Solwezi Northwestern province following government decision to review the 2015 mineral tax.

According to mining.com, “Barrack will continue operations at its Lumwana copper mine in Zambia while the government tweaks a new royalty regime.”

Last week President Edgar Lungu directed the Minister of Finance Alexander Chikwanda and his Mines counterpart Christopher Yaluma to review the tax and recommend to cabinet by April 8.

The move saves more than 4000 jobs at Lumwana which were threatened by the suspension of operations which the Canadian multinational had promised  to effect at the end of  March if the government did not back down.

Government in 2014 proposed the introduction of six percent (from three) mineral tax of underground mining and 20 percent (from six) for open pit mining to broaden the revenue base.

The Zambia Chamber of Mines which has since welcomed government announcement then opposed the increases saying they would discharge massive job losses.

President Lungu said he had received representations from the chamber and other stake holders who had been hurt by the global drop in the price of copper.

Check Also

Gemfields finalises $65 million debt financing facilities to fund expansions

Aim-listed Gemfields has announced the finalisation of four debt financing facilities after considering a number …