Article by zhangtianyu

With the gradual rise of international copper prices, the world’s fourth-largest copper producer in the country – Zambia’s mining investment and the yield was increased. With the weight of international copper prices early this month, more than 8,000 U.S. dollars a tonne high domestic calls upon the Government of Zambia to resume mining tax revenue to increase gradually increase the pressure of public opinion.    By the international financial crisis, the international price of copper has been from the July 2008 high of 8,985 U.S. dollars per ton in December 2008 dropped to 2,811 U.S. dollars per ton low. First half of 2009, the international price of copper began to gradually rise. On the 6th of this month, the London Metal Exchange (LME) 3-month copper price of 8000 U.S. dollars per tonne, after earlier breaking mark, up over 90% over the same period last year.    Zambia is Africa’s largest copper producing country, copper exports accounted for more than 70% of total exports. Forecast at the beginning of this year the Government of Zambia, led by the international price of copper continues to rise in 2010 copper exports are expected to reach 75 million tonnes, only 660,000 tons last year.    Relevant statistical data, said the first quarter of this year, Zambia’s total foreign direct investment of 1.2 billion U.S. dollars, up nearly 600% over the same period last year, of which the largest mining to attract foreign investment reached 500 million U.S. dollars.    Zambia’s largest copper mine – Konkola Copper announced since last year, has invested 1.6 billion U.S. dollars to transform capacity expansion is expected to be 5 million tons of copper concentrate production increased to 6,000,000 tons.However, the copper price did not make a significant increase in revenue. Zambian official data showed that while copper production in Zambia in 2009 than in 2008 increased by 20%, but the government revenue received from the copper industry, but only 29 million, compared with 3.6 billion in 2008 dropped significantly.    Experts pointed out that the factors that have copper prices plunged, but also with the government in early 2009 to reduce the burden on enterprises, abolition of mining profits taxes. In early 2008, rising to the international copper prices from time to obtain more profits, the Zambian government had a substantial increase in the taxes the mining industry, and the addition of at least 25% of the mining profits tax, the levy limit as ore prices increased. January 2009, as copper prices plunge caused many copper enterprises have encountered difficulties, the Government abolished the mining windfall tax. With the resumption of high copper prices, mining windfall tax in Zambia to resume the voice rising.  ”If the government does not resume mining windfall tax, then the price of copper rose to the terms of the ordinary people did not make any sense. Because they can not share the price of copper rose sharply the economic benefits.” University of Zambia, a scholar said.    The Minister of Finance and National Planning of Zambia Musokotwane said recently, after consultations with major mining enterprises, the Government is “not restart mining profits tax available.”    Zambia is currently levied on taxable items for the mining companies were mining 3% use tax, income tax 30% of the mining companies, 15% variable profit tax.Some economists said the Zambian government can make use of copper is now at a high level of favorable opportunities, offering a balanced tax system for the mining industry, for example, new environmental taxes, tax, infrastructure protection, and do not necessarily need to restore profits tax.

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