Taxes up - copper price up
The announcement of new taxes and licence fees for mining by Zambia's Minister of Finance Margaret Mwanakatwe is causing a stir. Zambia wants to reduce its national debt and balance its budget. After all, the budget deficit in 2018 is estimated at 7.4 percent of GDP. For global industrial metal prices, this could mean rising prices.
A ten-percent tax is planned for copper producers if the price of copper exceeds 7,500 US dollars per tonne. In addition, there is a new five-percent tariff for copper and cobalt exports. Due to the increasing indebtedness of Zambia and corruption cases, some Western donors have already turned their backs on Zambia.
Copper is one of the most sought-after metals, because it is particularly necessary, and is used in cars, televisions, laptops, smartphones and an important raw material in the construction industry. Although there are many copper deposits worldwide, experts expect prices to rise. The worldwide demand for refined copper has been rising for years. On average, between USD 7,500 and 8,000 are forecast for one tonne of copper in 2022.
Copper projects in mining-friendly regions should be able to operate profitably in the coming years. These include Copper Mountain Mining and Panoro Minerals.
Copper Mountain Mining - https://www.commodity-tv.net/c/search_adv/?v=298551 - owns its flagship project, the Copper Mountain Mine in British Columbia (which produces approximately 90 million pounds of copper equivalent annually) and the Eva Copper Project in Australia. The current feasibility study assumes an average annual production of approximately 90 million pounds of copper and 19,000 ounces of gold.
Panoro Minerals - https://www.commodity-tv.net/c/search_adv/?v=298566 - is looking for copper in Peru, which is also mining friendly. Two advanced copper projects (Cotabambas and Antilla) are joined by two projects in the initial phase (Kusiorcco, Humamantata).
Current corporate information and news releases from Copper Mountain Mining (https://www.resource-capital.ch/en/companies/copper-mountain-mining-corp.html) and Panoro Minerals (https://www.resource-capital.ch/en/companies/panoro-minerals-ltd.html).
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