LUBAMBE Copper Mine, which is controlled by EMR Capital, is in discussions with the Zambian government regarding concessions and a tax break ahead of developing a $1bn copper mine, said Reuters citing a company statement.
Lubambe said it had held discussions with all levels of the Zambian government, and noted that a host of approvals were required in order to build a mine of suitable economic scale, estimated to require $1bn in development capital.
The country’s fiscal regime was also discussed.
The Zambian government has been criticised by its Chamber of Mines for declining to make royalties to the state tax deductible. This embeds double taxation and would deter mining firms from investing in the country, the chamber has argued.
“The concessions needed are not material compared to the benefits to Zambia,” Reuters cited Lubambe has having said. “Importantly the concessions are not different to what is available in other copper mining countries.”
The company said benefits for Zambia over a long period would include jobs, supply opportunities, royalties and taxes. It said it was happy with the high-level engagement it had with the government and its willingness to work with the company
Lubambe has completed a concept study on the extension project that would produce up to 160,000 tons of copper annually with a mine life of more than 30 years.
