‘Lumwana won’t close’
Published On February 23, 2015 » 3222 Views» By Administrator Times » HOME SLIDE SHOW, SHOWCASE
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Edgar Lungu BIG NEWBy JAMES KUNDA –

GOVERNMENT will explore other measures of operating Lumwana Mine should Barrick Gold Corporation suspend operations next month, President Edgar Lungu has said.
President Lungu has since directed the Ministry of Mines to ensure that operations at Lumwana mine are not ‘idled’ for care and maintenance.
Meanwhile, Mr Lungu has assured mining companies operating in Zambia that Government is rapidly addressing concerns raised over the new mineral royalty tax.
The Head of State said this yesterday in a statement issued by his Special Assistant for Press and Public Relations Amos Chanda.
“If the investors proceed to idle the mine, one of the measures to be explored will include the identification of a suitable strategic technical partner to team up with ZCCM-IH, the Government’s investment arm in the mining sector to assume the operations,” Mr Lungu said.
Barrick Gold Corporation indicated last week that it would suspend operations at Lumwana following Government’s decision to uphold the revised mineral royalty tax for open cast mines which was increased from six per cent to 20 per cent this year.
The Canadian firm said Lumwana mine was also experiencing lower copper output and production which fell from 154,221 tonnes in 2013 to 140,631 last year.
However, Mr Lungu said if Lumwana Mine was placed under care and maintenance, Government would find a strategic partner to collaborate with the Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH) and assume operations at the mine.
The President said he was concerned that putting Lumwana Mine under care and maintenance would put more than 4,000 jobs at risk.
Mr Lungu has since assured Lumwana workers that their jobs are secure and there is no cause for alarm.
He made the assurance regarding the revised mineral royalty tax after completing a series of consultations with individual mine owners and collectively with the Chamber of Mines of Zambia (CMZ).
The meetings with the industry representatives took place at State House in the last two weeks.
Mr Lungu said Government’s priority remained one of engaging the mining industry with a view of mutually developing a fiscal and regulatory regime that provides a win-win solution for all.
He noted that Zambia along with the Democratic Republic of Congo (DRC) will remain among the few countries with the potential to increase copper production as well as their market share of global production.
Zambia’s copper production increased to 760,000 tonnes in 2013 before recording a drop to 708,000 tonnes in 2014.
“It should be noted that copper production performed poorly in 2014 even before the new mining tax regime was introduced. With forecast global prices of copper of US$6,350 per tonne in 2015 and $7,250 per tonne in 2016, Government expects the majority of the mining companies to continue to operate without major disruptions.
“Zambia’s copper production is likely to close at 900,000 tonnes for 2015, the highest ever levels since 1975,” the President said.

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