FQM PAYS US$850 MILLION IN TAXES, ROYALTIES By SANFROSSA MANYINDA
FIRST Quantum Minerals paid more than US$850 mil lion in taxes, royal ties, duties, and fees to the Zambian government, along with community and infra structure expenditure in 2020, a report has revealed. Despite the additional chal lenges faced in 2020, FQM achieved its highest annu al copper production which was reflected in the increased amount of its contributions to Zambia’s public finances.
The report further shows that FQM paid approximate ly US$209.5 million in min eral royalties ($195.8M, and a further $202.8 Million in company income taxes in Zambia during 2020 ($176.2 M, 2019). First Quantum Minerals Ltd is a global metals and mining company producing mainly copper, gold and zinc.
The company’s assets are in Zambia, Spain, Mauritania, Australia, Finland, Turkey, Panama, Argentina and Peru. In 2020, First Quantum globally produced 779,000 tonnes of copper, 265,000 ounces of gold and 13,000 tonnes of nickel.
In Zambia it operates the Kansanshi mine – the largest copper mine in Africa by pro duction – and smelter and the Sentinel mine in Kalumbila. FQM is therefore happy that there is an overhaul in Zambia’s mining.
The report says the new UPND government’s plan to rationalise the mining tax re gime to attract investment and boost production was the way to go.
The report says the 2022 Budget unveiled a key revi sion to the Zambia mining tax regime, namely the return to the approach followed by oth er global mining jurisdictions which enables companies to deduct mineral royalty tax payments against corporate income tax.
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