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FQM PAYS GOVT K5.6 BILLION IN TAXES

FIRST Quantum Minerals (FQM) has disclosed that more than USD $533 million (K5.6 billion) in taxes was paid to the Zambian government in 2018 and another USD $10 million was spent on community and infrastructure projects.

According to the recently published 2018 Tax Transparency and Contributions to Government report, the mining firm’s tax contribution to Zambia accounted for two thirds of the global company’s worldwide tax payments.

The report states that FQM paid paid USD $144 million in income taxes to Zambia Revenue Authority (ZRA), USD $197 million in mineral royalties, USD $73 million in Pay As You Earn (PAYE), USD $8 million in withholding taxes and USD $90 million in consumption and import taxes.

“The company’s Kansanshi Mine in Solwezi accounted for USD $315 million of the payments, 58 per cent of the total payments to Zambia while it’s Trident project, including its Sentinel Mine at Kalumbila accounted for 28 per cent or USD $150 million, a figure that reflected that the mine only began commercial operation in 2016 and has yet to turn a profit,” the reported stated.

FQM Chief Financial Officer Hannes Meyer said transparency will help stakeholders understand the economic benefits generated by its activities and how those benefits were utilized.

Meyer said the company will always strive to ensure that disclosures were transparent, consistent and accessible and presented in an understandable manner.

“We believe by openly working with the countries on tax policy and ensuring we are transparent in what we invest, pay and contribute we can benefit the countries where t we operate in by not only the contributions we make but also by the endorsements our investments made in the host country,” he said.



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fqm zambian govt taxes ZRA