LUSAKA (Reuters) – Zambia has fired Pius Kasolo, the chief executive of state mining investment arm Zambia Consolidated Copper Mines Investment Holding (ZCCM-IH), Mines Minister Richard Musukwa said on Friday, without giving a reason.

On Monday, Kasolo said the government should quickly resolve its tax row with mining companies to avoid hitting operations and ZCCM-IH dividends.

Zambia, Africa’s No.2 copper producer, increased its sliding scale for royalties of 4 to 6 percent by 1.5 percentage points from Jan. 1 and introduced a new 10 percent tax when the price of copper exceeds $7,500 per tonne.

Musukwa said on Friday the new tax measures were not meant to stifle mining operations and would not adversely affect the operations of ZCCM-IH.

“I am advised by the board of ZCCM-IH that the CEO Dr Pius Kasolo has been relieved of his duties,” Musukwa said at a joint briefing alongside presidential spokesman Amos Chanda.

ZCCM-IH spokeswoman Louisa Mbata-Kakoma told Reuters the company was preparing a statement on Kasolo’s dismissal.

Zambia also plans to replace value-added tax with a sales tax by April to help bring down mounting public debt.

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Mining companies said last month they may lay off more than 21,000 workers due to reduced capital expenditure over the next three years as a result of the new tax measures.

Reporting by Chris Mfula; Editing by James Macharia and David Evans