Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Zambia has stopped issuing and renewing mining licences as part of a shake-up of the mining sector by President-elect Michael Sata and his new government.
Mining Minister Wilbur Simusa said in a statement that his “ministry has with immediate effect and until further notice suspended the issuance of new applications, renewal and transfer of mining and non-mining rights.”
AFP reports that the suspension was imposed because the current process was inefficient and bureaucratic, and that an audit would be conducted of licences.
Simusa warned mining companies on Monday to expect “tough decisions ahead” as government engages them on taxation.
There is pressure on Zambia’s new president Michael Sata, who took office on the promise of improving mining conditions and a bigger share of mining profits for Zambians after protests at a Chinese-owned copper mine earlier this month and a brief ban on metal exports to sort out revenue collection in Africa’s top copper producer.
