Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
Vedanta Resources’ Konkola Copper mine, Zambia.
Konkola Copper Mines (KCM), a Zambia-based producer of the red metal — owned by Vedanta Resources (LON:VED) — has asked 133 workers to take paid leave while the firm reviews its operations.
The mining company’s chief executive Steven Din said the move was a result of the ongoing difficulties the global copper industry was experiencing, according to a statement quoted by Reuters.
“There is the possibility of the positions involved being made redundant but this will not be done until all options have been fully evaluated,” he said according to Reuters.
Two years ago, the company had to halt plans to lay off more than 2,000 workers after Zambia’s government threatened to take over the mines.
KCM accounts for more than 30% of the country’s total copper output and Zambia is Africa’s second copper producer.
