Investing

Zambia says it will restore ‘sanity’ to rattled mining sector By Reuters

© Reuters.

By Chris Mfula

LUSAKA (Reuters) -Zambia’s newly-appointed mines minister said on Tuesday that the government will ensure stability and predictability in the mining sector, seeking to allay fears of royalty hikes.

Paul Kabuswe also said the government must root out corruption in mining, which is the engine of Zambia’s economy.

“We may not do everything in the coming budget but I can assure you that sanity will be brought back to the mining sector before 2026,” Kabuswe said.

Zambian bonds and the kwacha currency rallied after the election of businessman President Hichilema, who named Kabuswe mines minister last week.

“We have to make policies that will not disadvantage the investors. We have to have stability in the economy so that the investor is happy,” Kabuswe told a press briefing.

Africa’s second-largest producer, which defaulted on its sovereign debt last year, has benefited from an increase in copper prices to record highs.

Kabuswe said Hichilema would oversee Zambia’s policy on Mopani Copper Mines and Konkola Copper Mines (KCM), two critical operations his new administration must tackle.

Zambia took on $1.5 billion in debt to buy Mopani from Glencore (OTC:) in January, and is yet to find a new investor for it.

The previous administration handed control of KCM to a provisional liquidator in May 2019, triggering an ongoing legal dispute with its former owner Vedanta (NYSE:).

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button