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Last Trade - 18/09/20

Sector
Basic Materials
Size
Large Cap
Market Cap £5.08bn
Enterprise Value £9.00bn
Revenue £8.85bn
Position in Universe 64th / 3004

Zambian president threatens to fine miners who break law

Thu 13th June, 2019 12:23pm
LUSAKA, June 13 (Reuters) - Zambia will fine and break ties
with mining firms that fail to operate according to the southern
African country's laws, President Edgar Lungu said on Thursday,
escalating a dispute with India-listed Vedanta  VDAN.NS .
    Vedanta is fighting Zambia's decision last month to name a
provisional liquidator to run its Konkola Copper Mines (KCM)
business and is seeking international arbitration.  urn:newsml:reuters.com:*:nL5N2301RK
    Zambia, Africa's second-largest copper producer, says KCM
has breached the terms of its licence.  urn:newsml:reuters.com:*:nL8N2371    
    The dispute between Vedanta and the Zambian government has
intensified concerns among international miners about rising
resource nationalism in Africa.  urn:newsml:reuters.com:*:nL8N21F70M 
    Lungu said in a statement at a mining and energy conference
in Lusaka that the government expected investors to operate
within the confines of the law.
    "Failure to do so will result in the government imposing
sanctions and disengaging with the unwilling parties," he said
in the statement read out by Mines Minister Richard Musukwa.
    Zambia's Chamber of Mines said last month that 2019 copper
output could be as much as 100,000 tonnes lower than last year
because of changes to mining taxes.  urn:newsml:reuters.com:*:nJ8N219029
    Zambia plans to introduce a new non-refundable sales tax in
place of Value Added Tax, despite criticism from mining
companies.
    Lungu disagreed with the Chamber of Mines' predictions,
saying the government forecast copper output would reach 890,000
tonnes by the end of the year, more than last year.
    He said the government was ready for dialogue with miners,
which account for 70 percent of export earnings.
    But he added: "The government will not take kindly to any
form of arm-twisting on the part of industry with regard to
meeting their obligations."

 (Reporting by Chris Mfula; editing by Emelia Sithole-Matarise)
 ((chris.mfula@thomsonreuters.com;))
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