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Sunday, May 22, 2022

Zambian Mines Look to New Leader to Unlock $2 Billion Investment

Economy Zambian Mines Look to New Leader to Unlock $2 Billion Investment

Copper producers are ready to start expansion projects worth $2 billion in Zambia next year if the industry can reach an agreement on royalties with President-elect Hakainde Hichilema’s new administration.

Companies including First Quantum Minerals Ltd. and EMR Capital are ready to raise funding for the projects, while other producers need to spend “hundreds of millions of dollars” in capital that they’d held back since 2019 because of tax changes that deterred investment, the Zambia Chamber of Mines said.

Despite Zambia’s copper production edging higher to a record last year, output has largely stagnated over the past decade because of the industry’s hostile relationship with outgoing President Edgar Lungu’s government.

In 2010, Zambia produced nearly twice as much of the metal as the Democratic Republic of the Congo to the north.

By last year, Zambia’s output was almost half that of the DRC’s, limiting the benefit of record prices.

“The president-elect has reset the tone to one of rebuilding confidence and spurring growth,” Chamber of Mines President Godwin Beene said in response to emailed questions Thursday.

“The industry is very positive that with this common-goal approach to the way forward, there will be more of a partnership with government than we have ever seen before.”

First Quantum, which accounts for more than half of Zambia’s copper output, declined to comment.

The mining companies’ main request to the government is that they be allowed to deduct mineral royalties from the tax they pay on profits, according to Mr. Beene.

They also want sliding-scale taxes that are levied on a pay-as-you-earn basis, he said.

Mr. Hichilema, who won last week’s elections by a landslide and has pledged to implement stable and predictable policies, is due to deliver his inauguration speech on Aug. 24 and is expected to make more detailed economic pronouncements.

25 COMMENTS

  1. He has already started his mission of selling out the remainder of our resources to his imperial masters. Privatisation was not enough for this imbeclLe hh

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  2. DONT TALK SH1TE TR00LL INVESTORS ARE HERE TO MAKE MONEY FOR THEIR SHAREHOLDERS
    AND ZAMBIA YOU AND YOUR LEADER FAILED HOPELESSLY NOW ZIP IT AND LET THE FINANCIALLY SOUND MINDS
    DO THEIR WORK
    YOU CAN GO BACK TO YOUR SH1TEMBA

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  3. Tikki the same investors who colonised you and raped you off your resources. They have done a good job Brain washing you f00Iish upnd diasporans. Fuseke

  4. Tikki the same investors who colonised you and reapedyou off your resources. They have done a good job Brain washing you f00Iish upnd diasporans. Fuseke

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  5. KZ, give our President breathing space….we understand your frustrations especially the fact that HH has always been in your mind during the PF regime.

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  6. These mines have waited with this 2 billion dollars investment for HH to take power. They knew that if they would have done it under the thieving Edgar China Lungu they would have to pay a bribe amounting to 1 billion dollars. Sorry Edgar China Lungu, sorry stup!d KZ, the money goes to where it is supposed to go! Yes I know, you have to get used to not getting a piece of the cake!

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  7. Leave the UK based Troll/ impostor to cry itself in the corner…really laughable…the most it posts the ignorant it sounds as it can not post anything sensible. A tip to you impostor when your party is in opposition you must do some research at least to counter an argument.

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  8. Frankly speaking the country has not benefited from the mines because of the shifting of goal posts by the owners. The government has instead been reimbursing the so called VAT to the mine owners.

  9. “….. if the industry can reach an agreement on royalties with President-elect Hakainde Hichilema’s new administration.”

    Why do they always want tailored tax deals? These companies do not do this in the Western countries

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  10. I thought Zambia had learnt a lesson to how it has never moved up in the business of mining , but those who came extract copper have advanced in terms of development.
    It is time to think of a better way of doing business, most of these investors who come to do mining are thieves whose interest is only to to loot and take to other countries like what Annual Gull was doing, now with this guy in the driving seat anything from the west is clean! Clean you must be joking

  11. @Kaizar Zulu you are a SORE LOSER. What type of human being are you are to none stop spew so much HATE. Who raised you??? Once a THUG always a THUG.

    Beware Kharma is a B*t*h

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  12. To think Zambians kept a bunch of drunkards at state house for 7 yrs is beyond me…

    The country sits on money…these *****s need to be arrested for retarding development!

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  13. Tongas don’t steal or loot public money…imagine how developed zambia would have been today had HH’s 2016 bid wasn’t rigged by the know- nothing PF..

  14. Kaizer Zulu shouldnt you be getting ready for a lengthy prison term instead of trolling on the internet I am realiably informed that you are on the law enforcement TO DO LIST

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  15. How greedy are these people? They hold back investment because the country demands a share of 3%? You hold back $2 billion to secure a deal so that your can freely take out $100 billion! that my friends is witchcraft. This is exactly what’s wrong with us. We should demand at list 50% ownership from our mines. HH, just like Ramaposa has been captured by big corporate. Just look across the pond in SA how you colleague is fire fighting. Don’t say we didn’t warn you.

  16. Always looking to the west to develope our own nation bushe tukasalapuka lisa fwema zambians?The investors are only here to fatten there politics and not improve our livelyHoods.

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  17. Isn’t this guy one of the Zccm managers who failed to run the mines? Anyway there’s no need to talk about blood is thicker?

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