The Lusaka Times reports that North-Western Province Permanent Secretary Jeston Mulando has urged Candian investors Equinox, who are building Africa's biggest mine at Lumwana, not to be scared of the recent announcement by President Levy Mwanawasa on increasing taxes. Yesterday's blog reported comments from Equinox's vice-president stating that he believed that company would not be subject to any change of terms as it already holds a Development Agreement. Mr. Mulando seemed to rebut that assertion, stating the mines would still make enough profit with the 47 per cent tax.
Lumwana Managing Director, Harry Micheal, responded that the increase in tax was a blow to his company since they were still in construction phase. He lamented that soon after the President’s announcement on the increase in tax by mines, Equinox had lost three million US dollars. The Managing Director however, said he would travel to Lusaka to seek clarification from Government on the details of how they would effect the new tax regime on mines.
The Permanent Secretary also encouraged Lumwana management to procure materials from local people. Lumwana is typically described as being 'a new Copperbelt' emerging fully formed 'in the bush'. Little infrastructure surrounds the new plant, and the area has seen little formal employment. The company is building entire new settlements to house workers. Building is at an advanced stage, including the 5 km long converyor belt from the primary crusher to the process plant, a chemical storage shed, twin tower laboratory and a largest mill in the world. Management have confirmed that 320 housing units have been completed for junior workers and have targeted to construct 1,000 more houses. Mr. Micheal said that management wanted to complete construction works on time so that by the end of June this year full production of copper commences.
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