Zambia to Revoke Glencore Unit's Mining License
April 15 2020 - 9:53AM
Dow Jones News
By Nicholas Bariyo
Zambia says it plans to revoke the mining license of a Glencore
PLC unit, accusing the miner of failing to give sufficient notice
before declaring force majeure at its operations amid a worsening
economic environment caused by the coronavirus.
According to Zambia's mining licensing committee secretary,
Michael Chibonga, Glencore put its operations under care and
maintenance and suspended over 1,100 workers in "total defiance of
the directive against such action."
"The mining licensing committee intends to revoke the
large-scale mining licenses," Mr. Chibonga said in a letter to
Mopani Copper Mines, Glencore's local unit.
Glencore said last week that its operations in landlocked Zambia
were facing a challenging operational environment due to
disruptions on international mobility transportation and supply
chains arising from coronavirus outbreak.
Zambia, which has recorded 48 cases of coronavirus, rejected the
miner's plans to close operations, saying that reasons being cited
weren't adequate and "do not conform with the law."
Zambian state media reported Tuesday that Glencore officials are
in talks with the government to resolve the standoff.
Until the current disruption, Glencore hoped to produce between
50,000 tons to 70,000 tons of copper at its operations this
year.
Write to Nicholas Bariyo at Nicholas.Bariyo@wsj.com
(END) Dow Jones Newswires
April 15, 2020 09:38 ET (13:38 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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