Zambia's president collision course with mining giant

If mounting foreign debt, an anaemic currency and stagnating growth aren't enough, President Edgar Lungu's move to break up Zambia's largest copper mining firm threatens an investor exodus and thousands of job losses.

Higher taxes on the mining sector were supposed to help Zambia with its debt problem, but Lungu has taken a hardline approach with international mining companies, accusing them of failing to pay taxes and threatening to expel them from the country.

"Government will not take kindly to any form of arm-twisting," he told a recent mining and energy conference.

"Government's expectation is for investors to operate within the confines of the law -- failure to do so will result in government imposing sanctions and disengaging with the unwilling parties."