Canadian mining company First Quantum Minerals Ltd will not be laying-off workers at their operations in Zambia and remains in dialogue with Government over the new Mining Taxes, that’s according to a report by a local publication, Mwebantu.
First Quantum announced on Monday that it would lay-off about 2 500 of its workers following the decision by the government of Zambia to hike mining tax.
Zambia increased its mining royalties on January 1, to reduce its public debt.
According to Mwebantu, First Quantum will not now proceed with the planned lay-off of any Zambians involved in its production activities. In addition, First Quantum commits to strive to maintain its production where operational constraints allow.
“Following detailed analysis and after having considered various factors resulting from the new taxes, First Quantum has decided to reduce only those elements of its workforce in Zambia associated with Capital Projects.
“Notwithstanding this, First Quantum continues to engage closely over the new taxes with the Government of the Republic of Zambia, in order to find an enduring solution which is beneficial to both the Government and the Company.
“First Quantum is fully committed to growing its operations in Zambia with the help of the Government.”