NEW YORK (TheStreet) -- Vale SA (VALE) and other copper miners will no longer have to present the government of Zambia with import certificates from destination countries, as the country has decided to relax its tax rules on copper exports, the Wall Street Journal reports.
Zambia is easing its export rules as submitting documentation outside of the country's jurisdiction has proven hard to do.
The country's copper miners have been seeking $600 million in unpaid tax refunds, which the government said it would pay, only if the companies presented the import certificates, the Journal added.
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Zambia imposed the tax rule in an effort to improve transparency and revenue collections from the copper mining sector, but executives argued that providing the certificates was almost impossible, as buyers will often sell the product to third parties, the Journal noted.
With the tax rule eased, negotiations over the $600 million are expected to begin within a few days.
Shares of Vale are up 0.07% to $13.64 on Tuesday morning.
Separately, TheStreet Ratings team rates VALE SA as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate VALE SA (VALE) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity."