LUSAKA, Feb. 2 (Xinhua) -- Zambia on Friday dismissed the head of a government-owned mining investment agency amid disputes over the country's new mine tax regime.
Minister of Mines and Minerals Development Richard Musukwa confirmed to reporters during a press briefing that Pius Kasolo, chief executive officer of the Zambia Consolidated Copper Mines-Investment Holdings (ZCCM-IH), has been relieved of his duties by the board.
The minister did not give a reason. He said he could not reveal all the details regarding the dismissal, but noted that the agency will issue a comprehensive statement on the matter.
Kasolo this week said the ZCCM-IH was opposed to the new tax regime to increase tax on the country's copper producers, as the measures would have negative impact on the agency and investment in the mining sector.
He urged the government to quickly resolve the tax impasse with mining companies to avoid production and investment declines in Africa's second largest copper producer.
The Zambian government last year announced that mining royalties would rise by 1.5 percentage points from Jan. 1, and also introduced a new 10 percent tax when the price of copper exceeds 7,500 U.S. dollars per ton.
The new tax measures sparked disputes in the country with mining companies warning that the tax increase would hurt the job market as well as the country's economy.
