Government will not allow First Quantum Minerals Limited (FQM) to export the over 60,000 tonnes of copper concentrates to neighbouring countries for processing without first exhausting all available means in Zambia.
Mines, Energy and Water Development Minister Yamfya Mukanga said government was examining all smelters in the country to ascertain their processing capacity before considering whether FQM should take the copper concentrates outside the country.
Mr. Mukanga told ZANIS in an interview in Lusaka yesterday that government was not very keen on letting the copper concentrates leave the country for processing.
He said government was working hard to ensure that the over 60,000 tonnes of copper worth about US$100 million remained in the country for processing.
He said his ministry had asked the mining firm to submit their request in writing on how best to get rid of the copper concentrates while considering the information that was received on the ground.
Mining giant, First Quantum Minerals revealed that it was keeping 60,000 tonnes of copper concentrates worth US$100 million from its Kansanshi Mine in Solwezi because all smelters in the Copperbelt province were heavily congested.
FQM has since called on government for a duty waiver which stands at 10 per cent on the copper concentrates.
Meanwhile,
ZANIS
There’s no capacity to smelt all the Copper in Zambia. Indonesia, Chile even Australia do export concentrates. There’s nothing unusual about this! Besides FQM were granted a licence by the government to build a $640m Smelter in Solwezi. So please cut them some slack and let them export the concentrate. This is a company that has shown a lot of commitment to Zambia. And they are the only mining company that has been uptodate with their Tax payments. They are a good corporate citizen and you as govt should show common sense. Storing 60 0000 tonnes of concentrate also costs money! For God’s sake they are building a Smelter and on that account you should exercise some common sense!
The should pay the 10% and export. Mining companies are always crying for STABILITY in mining tax regimes…they cannot have their cake and eat it!
still examining?? mr minister u shld know ur smelter’s capability why is Zambia led by shld people???? this land for the dead, no hope.
the GVt should ensure that FQM builds the smelter if your infor is right………the only unusual part in exportation of concentrates is that employment z being exported as well
But why not build a smelter if you have 60,000 tons plus more still coming. I would urge government to see this as a business opportunity to set up a smelter if they don’t want concentrates to be shipped out by FQM, make the smelter next to their concentrator plant
Bicause it takes time, and the time cost money
ZEMA recently approved construction of a new smelter for FQM…the lazy reporter who wrote the article should have noted this!!
The concentrate could contain precious minerals such as gold which they want to process outside Zambia and evade tax. Certain countries such DR Congo can easily be cheated and so easy for them to steal the mineral.
You are 100% right. I know what it is!
thats the whole point. They contain gold, cobalt and other minerals. Thats what the chinese aare doing as well. Please stop them extenalising the concentrate through TAZARA.
This is just mere political gesturing by this minister; honestly what solutions is his gov’t going to offer FQM is he going to smelt the copper for them in State House…FQM is already building a $450m smelter recently approved by ZEMA which will be completed next year.In the meantime what options do they have?
These people are increasing production every month and we are still asleep instead of looking for innovative ways to increase our tax revenue from our natural resources.
i know this minister is not speaking from without seeing that he is a qualified engineer and was a suprentendant mu mine!these chaps who take out concentrate evade tax ilingi while they process other minerals from it ka..so yep get them to process it mu zambia..if they can invest in making my leeching plant that polute our environment..they can do one better and find a way of processing that copper concentrate
Just let them export, infact you even make more tax money on export of concentrates than cathodes or blister.
What is happening the once vibrate now white elephant Chambeshi’s COSAC smelter that was owned by AVAMIN (AGLOVAAL) now being running by Indians.Metallurgists can’t that smelter process the copper concentrate from Kansanshi and Lumwana Mines.
They want to start stealing indirectly, thats how they start, they thought paying off taxes in large amounts will give them a free way, vitendeni please!
This is a straightforward matter. Allow FQM to export concentrates and Government gains through taxes to be paid that is mineral royalty & income tax. Stop them from exporting; Govt. too losses. Fears of other minerals not being declared are unfounded as company declares it’s gold production among other metals & exported concentrates will yield an equivalent proportion of minerals. As if the Govt. Even has capacity to check locally processed mineral content! How then are other mine houses not declaring all their mineral production & earnings & paying the tax they ought to pay? My foot!
the government has already made its choice on this there just woindow dressing for sure. FQM just export we know that concentrate has other minerals in it. why the F**k is Government so reluctant on building a smelter am sure they would get there money back along the way but as usual i smell kick backs.Pathetic Fools.
Chambishi mine was doing the same thing by exporting concentrate but there was much more in the ore (precious/semiprecious metals) that they were getting from it that they were not declaring to the govt and we were losing the precious revenue. N/Western province has much more than copper, how do we make sure that we are not cheated. Remember any business wants to make money at the end of the day.
DECISION MAKING! FYONSE NI SATA. WHEN R U GONNA DECIDE ON YO OWN? JUST EXPORT THE STUFF FOR! WE HAVE OURSELVES. WHY DIDNT WE THINK ABOUT THAT ALONG TIME AGO? MULEFWAYA MULYEMO? LET THE FQM EXPORT THE CONCENTRATE, UKOPO BWESU!
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