Despite being a mineral resource country as Africa’s number two copper producer, Zambia is known as one of the poorest countries in the world with an average living standard 1 dollar per day per citizen for all basic needs.
Lusaka, Feb. 11 – Did you know that the government of Zambia has sold its majority stake in Mopani Copper Mine, 51% to be specific, to a UAE based company International Resources (IRH) in return for a $1.1 billion cash injection?
The deal was sealed last November according to a Reuters report you might have missed in mainstream media. This means, Zambia as a country is losing shareholding in its mining assets while other resource rich countries like Botswana and DRC increase their stake.
Also Read: Canadian looting of Zambian resources led to debt crisis.
“In 2006, Zambian royalties from copper represented about $24m on $4 billion worth of copper extracted. The taxing of the mining companies wasn’t any better, too. Between 2000 and 2007, Zambia exported US$12.24bn in copper but the government only collected US$246m in tax.”
Experts believe for a country to gain more from its mineral resources, they need to own at least more than 50% in the mines or tax the mining companies a little more than Zambia does.
Presently, Vedanta Resources, an Indian company that was recently handed back KCM announced it has paid upfront up to $779m in cash on 7th February to bondholders under a restructuring exercise reports Reuters.
Ironically, Vedanta owned by controversial Indian millionaire Anil Agarwal is seeking to borrow money to run KCM which it left in debt owed to the Zambia Revenue Authority and ZESCO among many.
Despite being a mineral resource country as Africa’s number two copper producer, Zambia is known as one of the poorest countries in the world with an average living standard 1 dollar per day per citizen for all basic needs.
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