First Quantum Minerals Ltd has today announced earnings of $38 million for the second quarter helped mainly by improved performance at its Kansanshi Mine.
In a statement following the release of its second quarter results, the mining giant said changes to the mining tax regime which took effect on June 1 has helped boost performance.
The changes to the mining tax include the reduction of the royalty rate for open pit mines from 9% to a sliding scale of between 4% to 6%, based on the copper London Metal Exchange price and the repeal of the variable profits tax.
It said as a result, a $78 million credit relating to the revaluation of deferred tax balances in Zambia was recognized in the quarter under review.
First Quantum Chief Executive Officer and Chairman Philip Pascall said strong performance by all parts of First Quantum continues, as focus on two of the company’s most important priorities pay off.
“Firstly, all our Company’s operations have shown improvements in costs and efficiency. The greatest impact was attributable to Kansanshi, and the operation of its smelter. This provides the mine with more acid than previously available, and at virtually no cost. The extra acid helps recovery of mixed and high acid consuming oxide ores,” Mr Pascall said.
He said the combination of higher recoveries, negligible acid cost, and the lower smelting treatment costs made a significant difference.
“Other aspects of Kansanshi, particularly mining, have also improved markedly, as they have across the Company.”
Why is it that its only Chamber of Mines and Mining Congolomerates that seem to be happy with these new changes??
It is the way of capitalism, when Zambians start competing locally only then will things change. We need to be brutish as well. Dead aid, the old Dambisa style. She is quiet now. Must be that six figure job.
Its really sad they have reduced taxes from 9% to a reduced tax rate and on a sliding scale meaning that when copper is booming they still enjoy – they are better off and we are worse off but when they price drops they want us to suffer together. African leaders are really pathetic.
Dambisa has been silenced and sold out with a desk job by the very corporations she was writing about!!
Guys,
That was the final endorsement President ECL needed.
Vote wisely next week.
Give him a resounding success.
He has a good understanding of large corporate business.
HE WILL MAKE ZAMBIA GREAT AGAIN!
Thanks Mr Pascall
What understanding is that? You are the selfsame ignorant people who would thank a Pimp for employing your daughters in his Motel not knowing its a brothel!
Why is zambia not great anymore? Because of PF and it’s corruption!!! It was great under MMD the kwacha was stable for more than 10 years. But PF has managed to devalue the kwacha by more than 100 % in 5 years. Wake up zambia we need new governance and if they don’t perform they must go in 5 years also.
He swindle a client want about a country, think next week,vote wisely, pf too corrupted.