First Quantum Mineral (FQM) has said it will never involve itself in tax avoidance activities and will progressively increase the amount of taxes due to the Zambian government as more of its mining units start production.
FQM Resource optimization manger John Gladson said as a matter of conscience the owners of FQM will not involve themselves in tax avoidance and would increase taxes to the Zambian government to KR10 billion per year by the end of 2015.
The company owns 80 per cent of the shares in Africa’s biggest mine, Kansanshi Mining in Solwezi and is developing other mining units within the Northwestern Province of Zambia.
Mr Gladson said in Solwezi during the tour of FQM flagship, Kansanshi Mining, by media heads and other journalists from various media houses, that the firm was committed to paying all the taxes due to the government.
He said that it was disheartening that some investors have chosen to be avoiding the taxes, thereby robbing the Zambians of the much-needed resources for local development.
He said that instead of sticking to their tax obligations some companies have invested heavily in the engagement of astute lawyers who painstaking study the Zambia laws for loopholes which they take advantage of to avoid paying some taxes.
Mr Gladson said FQM was happy to remain the biggest taxpayers among the mining companies operating in the country and will gladly continue paying all the stipulated taxes.
He said FQM projected to start paying total taxes of US$2 billion per year from the 2015 when more of its mining units start production.
Earlier in his presentation, Kansanshi Mining acting general manager, Alan Delaney said the mining house has paid up KR7.8billion in corporate tax for the period 2005 to 2012 and another KR1.5 billion in mineral royalty for the same period.
Last year alone, he said, the firm paid a total of KR3.1 billion out of which more than KR2 billion was in corporate tax, with the rest being in mineral royalty and pay as you earn for its employees.
The company has increased its workforce made up of mainly local people from 3,354 in January 2009 to 9000 by May last year.
Mr Delaney said the Kansanshi was involved in various projects, in health, education and other sectors under its corporate social responsibility area.
The two-day visit by the senior journalists which started on Thursday was expected to end yesterday afternoon.
Is it the FQM who cheated the Chipolopolo that they will take them abroad for training?
Brother Nostradamus, lets appreciate what FQM is doing. Surely can’t we have other companies comping on board e.g. Luwana (Barrick). I believe FQM is doing a great job take for instance the patching of Chingola/Solwezi Road for the past 5 years at its expense, rehabilitation and extension of the Solwezi Airport Runway to name just a few. Well done FQM please keep it up.
get your facts right before you show as all how foolish you are Nostadamus with the happens around Zambia. iyee is a 100% telling the truth about FQM doing alot for as. Now PF is saying it will work on the Chingola/Solwezi Road its now over a year, no works done and using this road is a pain in the ass not even “project 8000 ” work on the road, if FQM can kindly start working on it use FQM roads department
If you know anything about business you know that what they are saying is a lie. It is part of the logic of business to reduce costs and increase earnings. So long as taxes are a cost, any business will try to avoid them to the extent permitted by the law of the land. A company like this one has a huge accounts and finance team that specializes in exactly doing that, avoiding costs (like taxes)
True only Fools will listen to their rhetoric
But on a SERIOUS NOTE, have you COMPARED what FQM and KCM pay as taxes to government
he is lying,its not like he will stand in front of journalists and admit tax avoidance…we know you are doing it the government should just be pro active instead of waiting for NGOs to do their job…..
FQM if what is being reported is true, then hats off to you. You are one of a kind. How ever, this statement requires independent verification.
No comment…but again its because zambia sugar has not been remitting tax returns hence FQM pointing a finger…but like I said..No comment
QFM learnt a lesson in DR Congo where they were booted out due to under declaring their revenue. Lets hope what they are promising will be implemented 101%. As for Zambia Sugar Plc they are guilty of robbing Zambian people of what is due to them. This is simply explained by the numerous adverts they are running in the media to do damage control. We need crediable NGO’s like ACTION AID not partisan ones like Transparency International etc. Action AID go for more of the companies that are robbing us of our wealth. Has KCM been clean in its dealings in Zambia, We need more information.
I was wondering y it shud take ACTION AID to expose crimes against us by Zambia sugar.can’t we develop capacity locally to check on these crooked companies.
Only a gullible person such as a PF politician would believe this PR corporate jargon…how ever you look at it even FQM negotiating a “10 year developmental agreement” to keep tax as it is with the government is tax avoidance as you are reducing your tax bill….is he telling us that FQM is not benefiting from incentives being provided by this weak government at the expense of the taxpayer ie cheap ZESCO tariffs.
And please don’t insult us by quoting figures in Kwacha as you make it sound alot but its peanuts and don’t you include PAYE in your figures!!