Glencore to stop Zambia mines

Zambia is talking to Mopani Copper Mines (MCM) over its parent company Glencore's plan to suspend operations.

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Lusaka - Zambia is talking to Mopani Copper Mines (MCM) over its parent company Glencore's plan to suspend operations following a drop in the metal's price, the minister of mines said on Thursday.

An electricity shortage and weaker copper prices have put pressure on Zambia's mining industry, threatening output, jobs and economic growth in Africa's number 2 producer of the metal.

“We are about to start discussing with Mopani. We very much get concerned when pronouncements are made about retrenchments,” Christopher Yaluma, the mines minister told reporters.

The government would not respond to Glencore directly but would instead negotiate with Mopani which was more familiar with the local economy, Yaluma said.

“Glencore is a parent company so when they talk they are talking at that level. Those are a little bit distant,” he said.

Yaluma also said Zambia would maintain the current mining tax regime despite the drop in global prices of the metal.

“We'll maintain the taxes as they are right now. We want to maintain some consistency which will provide some predictability,” he said.

Glencore, Vedanta Resources and China's NFC Africa and CNMC Luanshya Copper Mine have said they will shut down some operations due to the harsh business environment.

The power problems and copper price slide have driven the kwacha currency to record lows amid a selloff in commodity-linked currencies as key consumer China's economy has slowed, renewing pressure on Zambia to diversify its economy.

REUTERS