[2008-03-28]  Teal Mining delays Konkola North over new tax regime
TEAL Mining and Exploration Incorporation has put on hold Konkola North copper project until after the release of the country's new mining tax regime, the company vice president in charge of investor relations told Dow Jones Newswires Tuesday.

"We have delayed release of Konkola North until we see the final taxation structures," Julian Gwillim said in an email.

Teal early this year announced it would produce 25,000 metric tons of copper a year at the mine when it starts output.

From April 1, a new mining tax will be introduced, which will hike mining taxes and royalty fees and slap a 25 per cent windfall tax on mining companies.

Mining companies, through Zambia's Chamber of Mines, rejected the tax regime and have threatened to take the government to court but Government has insisted the decision on taxation is final.

Several Parliamentarians, donors, and civil society have pressured Government to impose high taxes on the mining firms because the country was losing out on revenue.

Zambia's annual copper output is expected to hit 1 million tons by 2010.

Source: © 2005 Zambia Daily Mail.