Copper mining under threat

Reuters

New York

Hit by a slump in copper prices, Zambia should maintain stable mining policies and taxes to avoid losing out to new, lower cost mines elsewhere, Chamber of Mines President Nathan Chishimba said on Wednesday.

Zambia is Africa's second-biggest copper producer, but Chishimba said companies faced challenges including old mines, deep ore bodies, low grades, low productivity and regulatory instability.

Zambia is facing its toughest economic difficulties in a decade as weak commodity prices, electricity shortages and slowing growth in China have hit growth.

Chishimba said Zambia's copper was expensive to produce and investors were reluctant to start new mines and expand existing ones because of constantly changing policies and taxes.

"There are new, low-cost mines coming on stream in other countries that can thrive in this low price environment," he said.