GOVERNMENT says it will raise more revenue from mining taxes after the mining audit for the three major mining firms is finalised.
And Mopani Copper Mine (MCM) says it will invest US$800 million in the operation of the company in the next five years.
Minister of Finance and National Planning Situmbeko Musokotwane said the mine audit is progressing well for First Quantum Minerals, Konkola Copper Mine and Mopani mine saying Government hopes to benefit more after it is completed.
“All the three firms are expected to be audited and we hope issues will be resolved, hopefully we will be able to raise more taxes coming out of this,” he said.
Dr Musokotwane was speaking during a BBC World Debate recording programme under the theme ‘Does Mining Benefit Africa’, on last Thursday at Mulungushi International Conference Centre.
He said Government commissioned the tax audit through the Zambia Revenue Authority saying it is unfortunate that data leaked before the results of final audit is released.
He called for value addition to copper if the country is to create more jobs for the people.
And MCM chief executive officer Emmanuel Mutati said the company had by April this year employed 20,000 employees with a total investment of US$1.2 billion in all its operations.
Mr Mutati said the firm has also set aside US$4.5 million to construct 1,800 toilets for its employees to be completed in August this year.
He further explained that the firm gets revenue based on the prevailing copper prices on the London Metal Exchange (LME) as opposed to speculations that the firm pays less for its commodity on the international market.
The audit revealed that Glencore AG, the purchaser, determines prices and that some copper from Mopani is sold under an “odd” contract with copper in one instance being sold at 25 percent of official prices at LME.
In other words, they are not paying taxes over 75 percent of the copper ‘sold’ to Glencore under that contract.
United Kingdom former Secretary of State Clear Short said African governments must let the people know the amounts of profits realised from the mining sector and ensure that they benefit from the skyrocketing commodity prices.
Zambia Daily Mail]
Government has not been sincere in its statements in regards to tax coming from the mines. Too many contradictory remarks from Minister of finance, and the Head of State
Mr. Mutati, please spare us the c.rap. Glencore is the all and all benefector of the copper from Mopani. They have made billions in profit from the crooked minegate purchase contracts. Mopani could market its copper directly and make more like what KCM does. This also creates imployment for Zambians who will do the marketing unlike now where Glencore does all the marketing of our copper.
Let us start to throw people in prison for tax evasion and auction their assets, maybe they will learn to respect Zambia. It is a pity, Mutati is a Zambian CEO and he is orchestrating the tax evasion in his company. If Mutati knew about the ‘doctoring’ of books in his company he should be thrown in jail, so that the others can learn from it. I don’t know what Musokotwane is complaining about, without the leak it would be business as usual in these mining firms-stealing from Zambia
WHERE DID THE LEAK COME FROM?
THE SAME MAN WHO SAID THIS WAS HOW THE ROADS WERE BEING PAID FOR WHEN ASKED BY MILUPI WHERE THE FUNDS WERE COMING FROM.
NOW HE TRIES TO SAY THE INFO WAS LEAKED WHEN IT WAS HIM WHO INFORMED THE PUBLIC HOW MUCH WAS RAISED BY THE CURRENT AUDIT ON THE MINES.
ZAMBIANS PLEASE STAND UP AND SAY SOMETHING AS THIS IS DAYLIGHT ROBBERY BY MMD WHO IS USING THE MONEY BEFORE DECLARING IT TO THE PUBLIC AS EXTRAORDINARY BUDGETS.
HOW CAN YOU SPEND BEFORE A BUDGET IS ANNOUNCED AND THEN SAY IS WAS PRIVATE INFORMATION.
EVERYBODY NEEDS TO VOTE OUT THE GANGSTERS IN MMD.
So there is an in house windfall tax dished out? Who are the benefisheries and why? There is a lot to tell. Zambia has been sold by just a clic of few selfish individuals.
Are those numbers true 20000 employees for MCM when KCM has got about 7000 kcm employees and the rest are contractors.
Mr Mutati what crap? Wouldn’t it make more sense to spend $4.5 million dollarson houses for your employees instead of toilets…Houses would be an incestment worth announcing as it benefits workers. By the way it is the duty of Mopani like any other company to have toilets for its workers for sanitation reasons. Are you telling me they have been operating without toilets all this time? Mutati needs to think about the livelihood of Zambians.
Mr Mutati what crap? Wouldn’t it make more sense to spend $4.5 million dollars on houses for your employees instead of toilets…Houses would be an investment worth announcing as it benefits workers. By the way it is the duty of Mopani like any other company to have toilets for its workers for sanitation reasons. Are you telling me they have been operating without toilets all this time? Mutati needs to think about the livelihood of Zambians.
Infact the cost of 1800 toilets can not be $4.5 million dollars. Are these the kind of wasteful costs that they get tax deductions for on the so called variable tax?