LUSAKA (BT) – Toronto Stock Exchange (TSX) listed Glencore corporation will preserve jobs at its Zambia operation despite the new tax regime. This was confirmed by Mopani Copper mine Chief Executive Officer – Chris Vermeulen during a consultative meeting with the Ministry of Finance on 17 Jan. Mopani officials assured Finance Minister Margaret Mwanakatwe that they will not be laying off any staff in light of the new tax regime.
This meeting follows the recent threats by miners to lean their operating costs through layoffs in response to a proposed tax regime. Africa’s second largest copper producer, has introduced a new tax regime that saw mineral royalty taxes edge higher by 1.5% across the spectrum with a 10% bracket when copper exceeds USD7,500/MT. The copper producer also proposes doing away with value added tax to be replaced by sales tax effective 01 April this year. Mopani is the first mine to commit to preserving jobs since the new tax was effected.
My Ministry has strengthened the domestic resource mobilization drive for the purpose of raising funds that will help the Government to meet investment needs in education, health, agriculture and economic infrastructure development, Honorable Mwanakatwe said.
Mopani’s approach is to dialogue in a mutually respectful way Chairman and Non-Executive Director Moses Chilangwa told the MinFin.
Mopani Chief Finance Officer John Chiwele urged the MinFin to assist with expediting with VAT refunds to the mine.
The government was represented by Secretary to the Treasury Fredson Yamba, Permanent Secretary for Economic Management in the Ministry of Finance Mukuli Chikuba, Copperbelt Province Minister Japhen Mwakalombe and Director of Planning Ministry of Mines Bernadette Mwakacheya.