The Chamber of Mines told the Zambian Parliament that introducing new taxes would likely cause a recession, job losses and disinvestment as 'investor confidence' in the country collapsed. This blog called that talk what it was: bull.
So, six weeks into the new tax regime, who still thinks the Zambian mining taxes will have a devastating effect on investment, share prices and profitability of copper mining in the country? Not the international business community, that's for sure. As Moneyweb reports, share prices of the copper mining companies (except ZCI, and we know why that is) are going through the roof. As you can see, poor old Equinox, who just can't stop whining, are really feeling the pain of the continued copper boom, with a 24% hike in share price! The article notes:
"Across the border, the Zambian government remains intent on extracting more taxes from its mainly copper mining sector, also creating a perception that investments in the country have been sold off. Equinox (EQN CN, C$5,77), with interests exclusively in Zambian copper (with a significant potential uranium byproduct), has posted a price gain of 24% in the past three weeks. First Quantum (FM CN C$91,89), which operates in both Zambia and the DRC, has posted a 22% increase in its stock price over the past three weeks. The Metorex stock price has declined 16% in the past three weeks. Metorex holds significant interests in both the DRC and Zambia."
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