First Quantum Minerals Trident Mine General Manager, Sean Egner has expressed confidence that the sector will flourish following the proposed mining taxation system by the government.
Mr Egner said government has shown the desire to grow the mining sector by stabilizing and providing a conducive mining environment.
Mr Egner said this during a press briefing in Kalumbila that the Company has continued to keep their nickel enterprise project ready as they are hopeful of an opportunity to start mining.
Mr Egner said Zambia has an opportunity to showcase to the world its mining investment potential.
He said the mining tax regime in terms of mineral royalties under the new dawn government has made significant improvement which adds up to Zambia being the most favourable mining investment.
“The stability of the tax regime is one of the things the mining company and those intending to come and invest have always wanted and comfortable with,” Mr Egner said
He observed that with an increase in the price of copper on the international market, it is an opportunity for the mining companies to increase production.
The most favourable opportunity to take advantage of the countries resources without paying for them. Accounting standards dictate that Tax is paid from profit. The mines manipulate this loop hole by not declaring profits and therefore ending up with no tax obligations. They manage to do this because they borrow their capital overseas based on their portfolio of global mining assets. They then apportion a higher Tax expense which is tax deductible to country operations such as Zambia and end up showing a loss.
Continued….. So mineral Royalty Tax based on sales and windfall gains is the only way we can benefit as a country outside of taxing their profit from operations. So they are thanking us for reversing the S?’s that demanded Royalties. $2.4 billion worth which the country would have benefited from. Just because the mines help a government the payback for this help is disproportional and in fact criminal corruption at a very high level. God will judge.
Although FQM isn’t among the rogue mining companies, many Zambians don’t agree with Egner’s view on taxation. It’s a crime to exploit a resource that isn’t your without any compensation. The mineral royalty takes care of that. Profit based tax can be manipulated and that has been the case. What explanation can you give about Glencore and Vedanta that operated for over 20yrs without declaring any tax? They’ve instead left GRZ deeply in debt in unpaid VAT refunds. Isn’t this a crime against humanity? Have a empathy.
Just pause for a moment and imagine consumers boycotting goods or threatening detrimental action over tax. When a taxpayer is happy with his or her tax it most probably means it is not good for the collector. The mines have a long history of exaggerating their woes and operating costs. It is time, now, to put a lid on this. That bargaining pain must be arrived at so that it translates into a win-win state of affairs. We cannot be loses to corporates all the time. Time to stop this.
The best would be diversify into Agriculture and Forestry because Mining will never solve our current problems which ever way you look at unless these mining companies are compelled to keep their forex earnings within Zambia and remit only profits. As at now we will keep on crying with little benefits to the country.
They are happy now that their privatisation chola boy hh is back to sell more mines and give them favourable tax systems at the expense of Zambians. Pf will bounce back soon and will resume the inquiry into privatisation
Companies have a breather. Citizens don’t have that cushion.
You take away from your own people to give to mines to enjoy.
Two legs good, four legs better.
With regard to cocoa, Ghana leadership cared for its people. The west investors expressed anger. Here in Zambia, UNPD has given them tax holiday on our minerals, the west are happy. By 2026, we would have given them $10bn, if not more. I do not think UPND leadership is blind, they are intelligent. It is just that they care about their businesses and not about the youths who voted for them. After 2026, we will go to the same people, the west, and request for $1.4bn Or so kaloba . Hyna no head.
All the 6 comments above are PF cadre comments, who were the same people changing mining taxation every month. Even pa katando prices dont change every week. Look at them complaining of Foreign Direct Ivestment? How else do you think Zambia will produce or increase copper output? Cos the Government ownership of mines doesnt add up infact you PF took over KCM from Bamwenye ba kaso but Zambians realised that even ba mwenye ba kaso were way better than the PF cadre ownership of the mine. They suffered under you while you yourselves got rich. Infact most of them were fired and told we will give land to start agriculture.Like really? From mining to agriculture – was this a joke or what? And wer never even given Title Deeds, its the UPND that gave them Title Deeds last month…
WHY DONT THOSE WHO FAVOUR PF REALISE IT WILL NOT BOUNCE BACK
STILL THE SAME ROTTEN PARTY AS BEFORE
REBRAND AND KICK OUT ALL PAST LEARDERS