Message Ven 22 Fév 2013 06:28

FQM says it will never involve itself in Tax Avoidance

First Quantum Mineral (FQM) says it will never involve itself in Tax Avoidance activities
Time Posted: February 22, 2013 5:57 am


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.
Ce que l'on conçoit bien, s'énonce clairement, Et les mots pour le dire arrivent aisément. BOILEAU