Reuters, 18/09 14:41 CET
By Olivia Kumwenda-Mtambo
JOHANNESBURG (Reuters) – When
Canada’s Barrick Gold said it would close its copper mine in Zambia if
the government imposed a sharp hike in mineral royalties, President
Edgar Lungu had little choice but to back down to save valuable jobs
that keep the country going.
Mining accounts for over 70 percent of export earnings
and employs over 60,000 in the landlocked southern African economy. With
his Patriotic Front(PF) facing an election next year, Lungu, promised
no jobs would be lost and agreed to lower royalties than the government
wanted.
Barrick kept the jobs and the mine open in a case that
highlighted the challenges for African governments in dealing with
powerful international miners suffering from a global commodities slump.
Governments in South Africa and the Democratic Republic of Congo (DRC) are also grappling with thousands of mining job cuts ahead of elections.
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Source: Euronews
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