The Financial Collapse of 2001 Unwinding Message Board

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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding

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To: elmatador who wrote (3801)	10/27/2019 2:12:49 PM
From: Elroy Jetson	Read Replies (1) of 13801

Mining the copper ore found in Chile is far less costly than mining the copper ore found in Zambia and the Congo, even though the African ore also contains valuable cobalt. - End of discussion. Of the world's largest copper mines, Zambia contains mine number 15 and 17 while the Congo contains only number 20. - thebalance.com . Chile long imposed a copper extraction royalty of 4% to 5% on copper mines - compared with the 2% copper extraction royalty in Zambia and the Congo. You've chosen blame these cost differences on the character of African people, rather than copper concentration of their ore. I think you need to explain that. . In 2010 Chile raised the royalty rate in steps to 5% to 15% with the higher rates kicking in when copper profits are high. In contrast, Zambia and Congo raised copper royalties to 2% to 3.5%, with a "50% profits tax" which kicks-in at the same level as Chile's 15% royalty. The 50% profits tax is less costly than Chile's 16% royalty - which is a revenue tax which doesn't take costs into account. The foreign owners are shutting copper mines in Zambia and the Congo while increasing the output of Chilean copper because it costs less.

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