Glencore (owners of Mopani Copper Mines) last week halted operations at its Sable Zinc Kabwe mine because of withheld valued-added tax refunds owed to the company. Mopani has also suspended part of an $800 million plan to boost production of copper by 50 percent.
The Zambia Revenue Authority has held back on paying mostly mining companies more than $600 million VAT refunds, because it says exporters haven't complied with a rule requiring import documents from the countries the products end up in. Mopani alone is owed more than $200 million in refunds.
We must not forget that GRZ through ZCCM-IH owns 10% shares in Mopani Copper Mines. Though we should also remember that MCM has never declared any dividends to ZCCM-IH. There was talk a year ago of GRZ completely exiting ownership of mining companies and instead raising the taxation levels. But that was rolled back.
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