Saturday, April 20, 2024

FQM backtracks on job cuts over new tax Regimen


FILE: President Edgar Chagwa Lungu with management and staff at First Quantum Minerals’ Sentinel Mine in Kalumbila, along with dignitaries including Minister of Mines and Minerals Development Hon. Richard Musukwa (left), and FQM Country Manager General Kingsley Chinkuli (second right) and Sentinel Mine General Manager Morris Rowe.

Mining giant, First Quantum Minerals Ltd has pledged not to fire any worker in the wake of mining tax changes coming into force this year.

FQM said although new tax measures were introduced on January 1st 2019, it would reduce costs associated with the company’s new projects.

FQM stated that it will continue to engage government in order to find an enduring solution that will benefit both parties.

FQM stated that it will continue to grow its operations in Zambia.

FQM said it has committed to maintaining current production levels despite the operational constraint it might face because of the new taxes.

First Quantum Minerals Ltd. is a Canadian based mining and metals company whose principal activities include mineral exploration, development and mining.

Below is the full statement


    • I have a PhD, Masters, MBA, CIMA, ACCA , Bsc BA and I am only 27.

      These people should be fired and go back to school.

      I Hold a PhD



    • Yes it’s about time they start realising that this is our country, our minerals, our land. Kansanshi mine has a lot of minerals and I bet there are a lot of investors out there who are interested in taking over. We need to squeeze them for more benefits for the local communities.

    • We will still empower ZCCM-IH and we will be doing stock buybacks using these mechanisms until we attain a substantial stake in this mine.

      They are back tracking because we told them that would immediately take over yesterday and they know we are no bull with such matters.

      We will still takeover using hostile takeover maneuvers and we will still succeed. Time for manipulation is over and we will be systematic about our endeavors.

      Watch this space.

    • As is proven, “always giving in to a bully” will NEVER work! The bully sees that as weakness and they will keep pushing the envelope. Stand your ground and the bully doesn’t know what to do but back off….the story of our Mines in Zambia.

    • Just the other day you were supporting the mining conglomerates over your own Zambia. Today you want to act like a saint. Stop with your nonsense. It is Zambia first.

  1. Thanks FQM. What you need now is to seriously and honestly look at how the new tax will affect your operations then sit with government and discuss adjustments that will lead to a win win situation. Threats don’t solve anything. Thanks again.

  2. They Just Need to Increase Productivity Then You will meet those costs Given your competitive costs looking at it from the point view of CVP Analysis

  3. Mu Zambia there is money. Only a forish person can leave this country. This is a country of plenty, the pasture is ever green, ask the Chinese, Congolese, Indians, Somalians, Tanzanians and Nigerians. There is plenty to feed everybody, problem is that Zambians are lazy and only want to drink, smoke, dance and have sex and its only the foreigners who sees that the pasture is ever green

    • @Amake, no one will better this comment!

      It’s true folks Zambia is ‘maka’ (Hawaiian for beloved in the eye), to the eyes of the investors. Zambia is a bejewelled little country. Let’s work on access to these for the locals!

      They’ll never leave. I am sure there is catch somewhere.

    • And we encourage the exploitation because of 30 pieces of silver. To make it look like even expatriates are retrenched, they will get rid of a couple of whiteys and promise them something that will measure up to the time their contracts was end.

  4. too late , the southern small god of dundumwezi has already exposed you, he said FQM, KALUMBILA and LUMWANA have been waiting for me to go to state house so that we can continue raping the zambian mines. when we say under five has no advisers this is what we mean, how can he be in the forefront in supporting these capitalists. i need a comment from the nine stooges from the alliance especially kapimo , chimbwili , nalu beast and mu salt, no need to mention my brother BGM because he has already been initiated beyond repair.

  5. FQM stock prices have plummeted in the last six months.Copper is now trading at around $5,900 USD per tonne from $7,300 USD in 2017.The increased tax rates and reduced deductions that would add about 1.8 per cent to its all-in sustaining costs.
    Its not a question of what statements FQM issues but the prevailing business and economic conditions.

    • Sir, the tax is not in form of percentage. …it’s like if you salary is reduced it follows that even your tax will follow suit. It’s not a fixed figure please.

    • Learn to read “add about 1.8 per cent to its all-in sustaining costs”….No tax rate or percentage is mentioned.

    • You are one of the dumbest Zambians period. You are siding with capitalists like the give an ounce of care about you. Are you even native Zambian, or a relative of that thief that owns Vendata? If you do not care about Zambia, go like Mushota and let them marry you.

  6. strange how this press release does not have an author, maybe somebody doesn’t want to commit to anything, and resort to issue untraceable statements under duress, that to me isn’t an official communication and wont buy into it.

  7. Did anyone lose slepp over their threats? I didn’t! The mine owners make good profits in Zambia and can’t risk withdrawing investment. They just need to be reasonable in restructuring their costs. A job that can be done by a Zambian, avoid bringing in an expatriate. The govt must show firmness and headless chicken kind of decisions must stop.

  8. So ba UPND , your HH has been left in the cold, ditched by the investors. Ba shimaini, and Copperbelt residents, now you know who cares about your welfare, President Lungu and the PF NOT this perpetual loser Ichilema. Dont forget this in 2021 on top of privatisation saga, dont give him any vote, not even 100 votes. Uyu muntu wachabe chabe.

  9. No playing games, we need honest and transparent commitment. We’re not going to back down, We need money and we it very seriously to develop. Now, as we fight for increased tax collection together, Mr president we expect to see you like Mungufuli of Tanzania do aggressively fight corruption in all its forms. Honestly we are not convinced you abhor corruption going by the way you deal with it currently. Take your time and analyse if indeed you have stretched your arm long and hard enough to crash this vice.

  10. Imwe I am surprised. Mushota has been 27 since 2012. Is it normal. Which time frame is he/ she using?????

    • These guys pay the same type of Tax in Canada and they have not left. There the running costs are far much higher than Zambia. Its just that the loop holes they used to enjoy are being narrowed fast through the Norwegian Government sponsored mineral value chain project aimed making the mines pay the right tax. Naturally they loved an environment where they could evade tax with impunity but now things are changing for the betterment of mother Zambia.

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