First Quantum Minerals Limited has u-turned on its earlier plan to lay off workers saying it will not be laying-off Zambian workers.
The mining giant says it remains in dialogue with Government over the new Mining Taxes.
Canada’s First Quantum Minerals last month said it will lay off 2,500 workers in Zambia over plans by Africa’s Number two copper producer to hike mining taxes.
FQM said in a statement that it planned 1,250 layoffs at its Sentinel Mine at Kalumbila and 1,250 at the Kansanshi Mine Limited in Solwezi in the first quarter of 2019, as well as an unspecified number of contractors.
But in a statement issued to Money FM News on Tuesday, First Quantum says it will not now proceed with the planned lay-off of any Zambians involved in its production activities.
Furthermore, First Quantum says it commits to strive to maintain its production where operational constraints allow.
The Zambian mining tax measures introduced on 1st January posed a range of economic challenges to the mining sector.
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 says it continues to engage closely over the new taxes with the Zambian Government, in order to find an enduring solution which is beneficial to both the Government and the Company.
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