The Zambian government said Tuesday that the agreements signed with foreign investors in the mining sector are binding enough to retrain foreign investors from pulling out of the mines after amassing profits.

Responding to a question raised by an opposition parliament member on the number of tax concessions the government offered to several mines, Mines and Minerals Development Deputy Minister Ronald Banda said that variety tax concessions ranging from 15 to 20 years have been given to KCM, Mopani and Luanshya Mines except for Bwana Mkubwa mines that has not received any tax concessions.

Banda explained that the mine had not been granted any tax concession because no development agreement has been signed.

The deputy minister, however, said negotiations are underway between the government and the new mine owners to sign an agreement so that the mine could benefit from the tax concession arrangement.

The southern African country is one of the biggest copper- producing country in the world. its peak annual output reached 700, 000 tons in mid 1970s and then dropped gradually to 300,000 tons in 1990s.

To reverse the situation, it started privatization of its copper mines by selling most of the mines to foreign companies.

In recent years, due to more foreign investment, good management and advanced technology and increased prices in the international market, its output has gradually picked up to 440, 000 tons in 2005.

Source: Xinhua