Zambia's mining companies have failed to demonstrate how higher taxes introduced in the New Year will further affect their profitability despite the industry's ongoing objection to the new tax framework.
According to Reuters, the mining ministry had questioned (mining) companies to properly show how the new taxes would impact or sway their production and profitability in the last week but none had so far submitted the reports.
"Two mining companies have written to us asking us to give them more time but we haven't heard anything from the others," Paul Chanda, Zambian permanent secretary for mines told Reuters. "We wanted them to show how the new taxes will affect production and profitability, but so far we haven't received anything," Chanda added.
The Chamber of Mines stated in December last year that due to the new framework, more than 58 percent of the copper producers in Zambia would run into losses at current prices, which would put around 27,900 jobs at risk, but individual companies have failed to support this claim. Mining contributes to over 70 percent of the nation's foreign-exchange earnings. First Quantum, Barrick Gold, Glencore and Vedanta Resources are the renowned ones among all other popular firms operating in the country.