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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