VEDANTA, the majority shareholder in Konkola Copper Mines (KCM), has shut the operation following the introduction of an import duty on copper concentrates, said Reuters citing an announcement by the Indian company.
In its national budget in September, Zambia announced it would increase the mineral royalty rates by 1.5%, introduce a fourth tier rate at 10% when the copper price exceeds $7,500 per tonne, and make royalties on minerals non-deductible for tax purposes. In addition, it imposed new duties on imports which has already started to bit.
Citing a note from KCM to employees, Reuters said that operations at the mine would be suspended from January 4. New import duties meant there was a shortage of acid resulting in the suspension of its Nchanga smelter.