First Quantum Minerals (FQM) has appealed to government to help speed up regulatory approvals that include a multi-million Kwacha town development at Kalumbila, 120 kilometres west of Solwezi, where the global mining company is this year scheduled to commission the $2 billion Sentinel Mine.
The appeal was made to Vice President Guy Scott by Kansanshi Mine Public Relations Manager, Godfrey Msiska, during the 88th Agriculture and Commercial Show of Zambia (ACSZ).
“Your honour, there are plenty of social and economic benefits in the cupboard to augment the existing ones, and we need your assistance to unlock these for the greater benefit of Zambia,” Mr Msiska told the Vice President when he toured the FQM stand at the Lusaka Show Grounds.
“With reference to this year’s theme of ‘Breaking New Ground’, fact-based evidence of significant and sustainable benefits in areas where we operate vividly captures how FQM is living the theme,” he said.
Dr. Scott briefly replied that: “There is a bit of bureaucracy that needs to be sorted out.”
Established in 1996 to develop the Bwana Mkubwa project in Zambia, FQM has grown steadily to become an international leader in mineral exploration, development and mining.
Following acquisition of Inmet Mining Corporation in March 2013, the mining company is set to become a leading global producer of copper, with a diversified portfolio of operations and projects on four
continents.
In Zambia, FQM operates Kansanshi Mine in Solwezi, a flagship operation it co-owns with the government of the Republic of Zambia (GRZ).
It holds a stake of 80% in the mine while the remaining 20% is held by GRZ. In 2011, FQM was granted a large-scale mining license at Kalumbila where it is set to commission the US$2 billion Sentinel Mine, a copper mine expected to produce 300,000mtpa of copper.
Sentinel is the first of the three potential mines under FQM’s Trident project.
The second is Enterprise, a nickel deposit while the mineral resource of the third, Intrepid, is yet to be determined.
The future mining company of Zambia.Hoping our fellow own Zambians won’t betray us.7km x 4km open pit mine its not a joke.Bravo FQM.Government solve FQM what they need.
According to VP Scott, I quote “…There is a bit of bureaucracy that needs to be sorted out.” While regulations are important in making sure companies act socially responsible to various stakeholders, some of them end up being costs to the overall enterprise.
For instance, in the US regulators have published $494 billion in final rules. This figure dwarfs the Gross Domestic Product (GDP) from countries like Sweden, Peru, and Ireland. With more than $87.6 billion in proposed rule costs this year, burdens will continue to increase in 2014.
These are intrinsic costs that in turn would be used to grow real GDP for the smart people of the Zambian Enterprise’s economy and yet they are used for other counterproductive things. GRZ needs to speed up this process after all we own 20% of FQM.