Government has maintained that it will not re-introduce the Windfall tax on the mining sector as it will militate against levels of mineral exploration activities in the sector.
Mines and Minerals Minister Maxwell Mwale says explorations is the backbone of the Zambia’s future in the mining sector stressing that the introduction of super taxes of mines would lead a drop in explorations as witnessed when the windfall tax was introduced in Zambia.
The Minister was speaking at the presentation of a cheque of dividend, a payment worth $ 18.1 million, by Kansanshi Mining PLC a major holding of First Quantum Minerals FQM to Zambia Consolidated Copper Mining Investment holdings ZCCM-IH, a minority share holder of Kansanshi.
The Dividend is the first single largest payment ever received by ZCCM-IH from the firm which is the highest since it began its operation in the mining sector.
Mr. Mwale said the gesture by the firm is a clear demonstration of Government and the countries benefits from foreign investments in the sector as opposed to some sections and sectors of the country that Government is not benefiting from its investments.
And First Quantum Minerals FQM Resident Director Kwalela Lamaswala said that the payment follows a review of Kansanshi Dividend Policy by the board and comprises a special Dividend of US$ 15.6 million for the end the financial year of 2007 while the other US$ 2.5 million accounts for the end of the 2009 financial year.
He said the objective of the review of its policy is to ensure that its share holders receive an attractive return on their investments.
Speaking at the same function as he received the cheque ZCCM-IH Board Chairman Alfred Lungu said that the Dividend not only represents a valuable return on its investment but that it will also enhance opportunities of the Government holding to supplement its investment portfolio for the ultimate benefits of the Zambians.
He also said the Dividend will help ZCCM Holdings to offset the remainder of its Legal liabilities carried over from the old ZCCM Limited before the firm’s transformation into ZCCM in 2002.
Mr. Lamaswala called on other investment firms to emulate what Kansanshi has done in order demonstrate their investment worthiness in the sector.