It was reported that Zambian President, Edgar Lungu, announced last week that the government would punish those mining companies that did not comply with the law and would sever relations with them. Lungu hoped that the mining companies could comply with the laws of Zambia during the exploration and development process.
In May, the Zambian government decided to entrust a provisional liquidator to take over the Konkola Copper Mines (KCM) owned by Vedanta India, which violated the license terms. Vedanta strongly opposed this decision and has sought international arbitration.
Despite facing opposition from mining companies, the Zambian government was determined to replace the value-added tax with a new non-return sales tax.
Lungu said that the government was ready to negotiate with the mining companies but would not accept those companies that didn't fulfill their obligations.
Source from Yieh Corp |
