First Quantum Minerals paid more than US$533 million (K5.6 billion) in taxes to the Zambian government in 2018, with an additional US$10 million spent on community and infrastructure projects.
Contributions to the nation’s coffers accounted for two thirds of the global company’s worldwide tax payments, according to its just-published 2018 Tax Transparency and Contributions to Government Report, a legal requirement under Canada’s Extractive Sector Transparency Measures Act (ESTMA) and Chapter 10 of the EU Accounting Directive.
The 2018 Tax Transparency and Contributions to Government Report highlights First Quantum’s contributions to host Governments, which helps to illustrate the positive impact the company strive to create everywhere they do business,” said the report.
During the year, FQM paid US$144 million in income tax to the Zambian Revenue Authority, US$197 million in mineral royalties, US$73 million in PAYE, US$8 million in withholding tax and US$90 million in consumption and import taxes.
The company’s Kansanshi Mine in Solwezi accounted for US$315 million of the payments – 58 percent of the total payments to Zambia, while its Trident project, including Sentinel Mine at Kalumbila, accounted for 28 percent or US$150 million, a figure that reflected that the mine only began commercial operation in 2016 and has yet to turn a profit.
FQM’s tax payments in Zambia during the year represented 14 percent of the country’s budgeted tax revenue of K41 billion (US$3.9 billion) for 2018.
The calculations are based on the average exchange rate for the year of K10.4781/US dollar.
And FQM Chief Financial Officer Hannes Meyer said the company knows that success is dependent on the wellbeing of the economies and communities where their businesses operate.
He said the company also believe that transparency can help stakeholders to understand the economic benefits generated by their activities, and how those benefits are distributed for local, regional and national economic and social development.
Mr. Meyer said therefore, FQM strives to ensure that their disclosures are transparent, consistent, accessible and presented in a way that is easily understood.
He also explained that First Quantum’s investments are large and involve significant amounts of upfront capital.
“First Quantum believes that, to attract capital to make these large scale multi-year investments, it is essential for tax policy to be stable and consistent and that agreements are respected.
In 2018, FQM’s contributions under ESTMA reporting standards amounted to US$527 million. Compared to 2017, tax payments increased by 54 percent, mostly attributable to Kansanshi, while royalty payments increased by 23 percent, mostly due to stronger copper production from Sentinel Mine and higher copper prices.
First Quantum’s approach to tax and royalty payments reflects its underlying core values which focuses on building open and transparent relationships with the tax authorities in those countries.
We know $42million was spent on Fire trucks ,I wonder what the rest was spent on? We have dumb leaders!
First Quantum should keep quiet before someone liquidate them.
@ Maharaji
Am sure you have now felt what it takes to drive on a tarred road hey, so where do you think all this is coming from? You are used to living in woods and so you cant see the good in whats taking place, is it a wonder?
Where did you get this article from? FQM Media team? Why dont you go look at the 2018 Annual Report – Delivering growth
@1.2 malinso
“..Am sure you have now felt what it takes to drive on a tarred road hey, so where do you think all this is coming from? …”
It came from the $17 billion zambia owes ????
But sadly all that money has gone to building mansions for Chitotela, Chitalu, Kampyongo, Amos, Kaiser and other PF thugs. The rest of us will never see this money until we lock them up
If you thought chitotela was corrupt, compare to Kambwili’s corruption. Kambwili got more money from the Chinese than Chitotela. Why Lusaka times is not publishing Kambwili’s court case?
That’s good .. it’s the first since 1980 the govt thought of fire trucks. Some fires could have been contained.. I think it was good move by the govt
Liars, how much did you as QFM make in the same period and externalized? You have been cheating us for far too long and we will not just sit and look whilst you rape our resources and make yourselves richer NO! ZRA, can yo please help President Lungu to collect taxes from these crooks? Given the state of affairs in our country, ZRA top brass shouldnt even been sleeping but working tirelessly to ensure the much needed revenue is collected from these crooks.
The days of arm twisting Government that miners will be laid off each time we ask for a fair trade deal is long gone. Infact anyone who sides with the mine investors when government makes a bold decision is an enemy of the people, politically and economically. So QFM must stop daring us, let it publish how much it made for it to pay…
It doesn’t matter how much tax is collected, does not benefit the people, it only benefits the apamwamb’s!
This leadership of Lungu should just go.You dont even feel happy when you hear increases in tax revenue,these are the monies the likes of Chitotela and other corrupt thieves have personalised,it is now their money,when we complain either form the top leader himself or they arrest us,what a useless lot.It pains me that Sata is not here to see the results of his useless leadership.
Malinso – even if they paid $1 billion so long as we have this lazy bum in State House who doesn’t care about loss of resources through corruption we will never get anywhere. Its like drawing water from a well with a bucket with a hole at the bottom
Money collected from the mines are either misused or stolen by corruption means. Had the money been put to good use, Zambia should have built many industries to depopulate unemployment.
People still think the govt can run businesses the best is the govt to partner with foreign companies .the govt should be actively involved. Allow the other partner do the running .
This is some very good reading. Let them now publish books from that Indian crook argwals camp KCM.
Ask the miners working at first quatam mine?Are they happy?With all this Money
Coming in why is the economy struggling? Rate of dollar ?
The bible says”all have sinned”.Even the new born baby has sinned.Peter Carlos Hinds.
What you should do.Is pour gasoline on a white man and light a match.Peter Carlos Hinds.
The white man should be tarred and feathered.Peter Carlos Hinds.
Let them publish the real amount of money they have made in proportion to what they have paid. How much of that amount has already been refunded as part of the VAT rebates? Zambians will look at half a billion and start dancing but how much have these people made?
They used it to buy a presidential jet
$500 million went to VAT refunds
This is very sad but God is watching and I believe he will do something about this high corruption in government God loves Zambia.
Where’s the rest of the money after the fire trucks n the private jet? I hope it’s been properly invested to benefit the country.
With all the speculation going on, it’s no surprise that FQM has made a ‘good’ publicity statement. On the one side ,there’s some wailing in the article about how the mine is yet to turn a profit and how stable taxes are key to the mines financial survival(with sales tax coming soon). The question is how much of this money is going back into the local communities?
How much refunds did FQM submit and received? How much money in real terms went to Govt?
Weakness shall not pass or enter 2021
Wickedness shall not pass or enter 2021