UPDATE 1-Zambian copper mining under threat, stable rules needed - mining chief

(Adds details, background)
LUSAKA, Dec 16 (Reuters) - Hit by a slump in copper prices,
Zambia should maintain stable mining policies and taxes to avoid
losing out to new, lower cost mines elsewhere, Chamber of Mines
President Nathan Chishimba said on Wednesday.
Zambia is Africa's second-biggest copper producer, but
Chishimba said companies faced challenges including old mines,
deep ore bodies, low grades, low productivity and regulatory
instability.
Zambia is facing its toughest economic difficulties in a
decade as weak commodity prices, electricity shortages and
slowing growth in China have hit growth. ID:nL8N13Y1MX
Chishimba said Zambia's copper was expensive to produce and
investors were reluctant to start new mines and expand existing
ones because of constantly changing policies and taxes.
"There are new, low-cost mines coming on stream in other
countries that can thrive in this low price environment," he
said.
"Unless Zambia takes action now to address our challenges,
so that we can compete with these other countries, our future as
a copper producing nation is in peril."
Mining companies operating in Zambia include Canada's First
Quantum Minerals FM.TO , Swiss commodities giant Glencore
GLEN.L and London-listed Vedanta Resources VED.L .
Chishimba said the problems in the mining sector were a
national crisis which raised long-term questions about Zambia's
economic prospects.
"We all need to come together and agree the conditions which
best promote the growth both of the mines and the broader
economy. As an industry, we are ready to create dialogue on this
vital strategic issue on which the future of our nation
depends."
Zambia's economy relies heavily on mining for investment,
jobs and foreign exchange earnings and there is a need to
diversify, he said.
"We have to create a high-growth, diversified economy which
spreads risk and opportunities across the economy, creates more
jobs and widens the tax base," said Chishimba.