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Wednesday, May 11, 2022

Zambia Chamber of Mines salutes First Quantum Minerals Plans to double investment

Economy Zambia Chamber of Mines salutes First Quantum Minerals Plans to double investment

The Zambia Chamber of Mines has saluted First Quantum Minerals (FQM)’s plan to double its investment by adding $1.3 billion in its Kansanshi Mine in the North Western Province for the next 20 years.

On the first day of the 2022 African Mining Indaba in Cape Town, South Africa, FQM Chief Executive Officer Tristan Pascall announced that plans have reached an advanced stage by his company to double its investment by adding 1.3 billion United States Dollars in its Kansanshi Mine.

Mr. Pascall said this follows the assurance and stance taken by the new dawn administration to create an enabling investment environment for investors in Zambia’s mining sector.

Reacting to Mr. Pascall’s announcement, the Chamber of Mines said the dual investments announced today by First Quantum Minerals Ltd, totaling $ 1.35 billion, will have a transformative effect on the mining industry and the wider economy.

FQM says it has also approved a final investment of $100 million, on top of $150 million already spent, to get its Enterprise nickel mine into production within 12 months.

Accordingly to analysts, the announcement provided an exciting start to the African Mining Indaba – the continent’s premier mining event held annually in Cape Town – which kicked off this morning, and has seen Zambia take centre stage so far.

Chamber of Mines Chief Executive Sokwani Chilembo said the two investments are game changing for Zambia.

“Firstly, the investment secures an ever-brighter future for Kansanshi and the copper industry in Northwestern province, and establishes a whole new level of excellence there with the advent of Enterprise as a global top 10 nickel mine. Secondly, this is not just a success for First Quantum and the Government; it’s a massive success for Zambian businesses and Zambian jobs. The multiplier of mining means this is likely to translate into tens of thousands of jobs created throughout the economy. This is just what we need to help dig the economy out of the hole it is in,” Mr. Chilembo said.

“Thirdly, what we have seen today is an extraordinary and welcome example of the Government and its private sector partners working in close co-ordination to deliver the maximum possible benefit for the country. I haven’t had much to smile about since I became Chief Executive of the Chamber, but today I’m smiling,” he said.

The four days 2022 Investing in African Mining Indaba opened in Cape Town, South Africa with a call for African countries to work together towards harnessing the potential that lies in the continent’s mining sector.

Meanwhile, the Kansanshi copper-gold mine near Solwezi, in the North Western Province of Zambia has been FQM’s flagship operation since 2005.

According to the FQM website, from its two open pits, the Kansanshi copper-gold mine produces more copper than any other mine in Africa.

FQM has installed several expansions, and the operation is now capable of producing 340,000 tonnes of copper and more than 120,000 ounces of gold per year.

Kansanshi employs more than 13,000 people, primarily Zambians, and utilises state-of-the-art technology to extract copper and gold from three different ore types, with world-class efficiency.

The Kansanshi mine is owned and operated by Kansanshi Mining PLC, which is 80 per cent owned by First Quantum.

10 COMMENTS

  1. Why did we sell our Mines? Chile is the largest producer of copper in the world. Who owns the mines in Chile?

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  2. Lower zambezi the best person to ask that question is that f00l you call your president or bally. He sold your mines for peanuts and now his masters are very excited that he is in control of our resources. Wait and see what happens by 2026. You won’t have a single state owned company

  3. Lower Zambezi – Chilean copper mines are 72 percent owned and operated by private mining companies. The remaining 28 percent is state owned and operated by Codelco a state corporation like ZCCM IH….there is your anwer. Next question?

  4. New dawn administration has created an enabling environment for the investors to milk Zambians. Ba youth tekeni amatako pashi.

  5. People,let us move on !!
    The Government has owned the Mines before under ZCCM,what happened ??? the mines were losing more than 2 Million Dollars every day !! The trouble with Government owning things,is that they always become lovely conduits for corruption.Look at the short history of the PF created IDC,

  6. Edgar China Lungu had TEN years to fix the mines. Because he only concentrated on filling his own pockets, nothing happenened. NOTHING. And now finally something meaningfully is happening. Of course our UK based imposter Stup!d KZ is not happy: I guess you didn’t get enough from your former master, who – may I remind you – dropped you like a STONE? Have a nice day KZ, maybe you can help Edgar pushing his wheelbarrow along Kasama Road!

  7. Lower Zambezi just do a quick search on Internet and you will see that Chilean mines are all mainly privately owned. BHP, Sumitomo, Anglo American, Rio Tinto and the like are the major share owners in those mines with Codelco (their ZCCM-IH) owning minor equity.

  8. This is ridiculous, nothing to celebrate for Zambia. What FQM will simply include it’s Zambian operation as part of the portfolio for collateral to lenders off-shore and assign to Zambia a much bigger tax expense which is tax deductible for them, meaning their Zambia operations will register a much bigger loss. We all know that taxes are paid from profits. In this case it means they will post a bigger loss for Zambia after the interest expense is applied and will evade tax and dividends in this manner. To make matters worse we will have to refund them VAT on imports so they will end up eating with both hands. Mineral Royalties was the only way we could make any money from these but this was suspended by govt. benefitting them even more at the expense of Zambians. This press statement is…

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