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Last Trade - 07/08/20

Sector
Basic Materials
Size
Large Cap
Market Cap £4.62bn
Enterprise Value £7.40bn
Revenue £8.58bn
Position in Universe 64th / 3003

Zambia tackles 'deliberate' undervaluation of mineral exports

Wed 10th June, 2020 12:23pm
LUSAKA, June 10 (Reuters) - Zambia on Wednesday said mines
ministry officials will, starting next month, personally collect
samples from mine sites around the country to prevent mining
companies seeking to undervalue their production to pay less
taxes.
    The ministry said some mineral exporters deliberately submit
low-grade samples to the state laboratory, causing an
undervaluation of mineral exports and depriving the government
of mineral royalty tax revenue.
    "The loss of revenue could amount to hundreds of thousands,
or even millions of dollars per export, depending on the
discrepancy in mineral grade between the sample and the
consignment being exported," Barnaby Mulenga, permanent
secretary at the ministry of mines, said in a statement.
    The change, which takes effect on July 1, means the ministry
will no longer accept samples submitted by exporters and is the
latest push by Zambia's government to squeeze more revenue from
the mining sector. 
    Mining accounts for more than 70% of Zambia's foreign
exchange earnings, an income that has become even more critical
as the COVID-19 pandemic hits the economy.
    Africa's second-largest copper producer, Zambia is also
trying to diversify its revenue base by boosting its gold
production, and making copper mining companies account for the
gold they produce as a by-product.  urn:newsml:reuters.com:*:nL8N2AZ4P9  urn:newsml:reuters.com:*:nL8N29011Z
    Companies operating in Zambia include First Quantum Minerals
 FM.TO , Glencore  GLEN.L , Barrick Gold  ABX.TO  and Vedanta
Resources  VDAN.NS .
    None of them had any immediate comment.

 (Reporting by Chri Mfula; writing by Helen Reid; editing by
Barbara Lewis)
 ((Helen.Reid@thomsonreuters.com; +27 11 595 2852;))
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