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The Electoral Follow-up Mission of the European Union has concluded its visit to Zambia.
The EFM was led by Cecile Kyenge, Member of the European Parliament, supported by two electoral experts and two EU officials.
Mrs. Kyenge served as the Chief Observer of the EU Electoral Observation Mission to Zambia in 2016, which was established following an invitation from the Government of Zambia.
The mandate of the mission was to observe independently all aspects of the electoral process and to offer an impartial, balanced and informed recommendations based on the Zambian law, as well as regional and international standards for elections.
The principal objective of the 2019 EFM to Zambia was to assess the continuous relevance and status of implementation of EU EOM recommendations.
During her stay in Zambia, from 9th to 14th June 2019, Mrs. Kyenge, met and exchanged with a wide range of national stakeholders.
Mrs. Kyenge set out her preliminary findings in Lusaka this morning, following a technical round table discussion where she expressed her appreciation for the availability and openness of all the people she met, which testifies to the timeliness of the mission.
She welcomed the continued commitment of Zambian stakeholders to implementation of the recommendations of the EU EOM report on the 2016 elections.
Mrs. Kyenge noted that 2021 is not so far away, and it is important to provide legal certainty to those managing, participating and voting in the elections at the same time, this implies broad ownership of the electoral framework across society, to guarantee its successful implementation.
She reiterated the Mission’s readiness to accompany Zambia to ensure the achievement of inclusive, credible and transparent elections and a further deepening of democracy.
A comprehensive EFM Final Report will be published in the next months. The EU Election Observation and its Follow-up Mission operate in accordance with the
“Declaration of Principles for International Election Observation” adopted in 2005 at the United Nations.
President Lungu With President Paul Kagame during a panel discussion
President Edgar Lungu has been applauded at the ongoing conference on Sustainable Development Goals after he said that investors that are in Africa to reap without paying dues are not right for Zambia and should not be allowed.
Speaking during a Panel discussion, President Lungu cited Vedanta as a case in point where he has had to tell the investor to leave Konkola Copper Mines.
The President also asked moderator Dr. Donald Kaberuka whether there was a country in the World that did not borrow but emphasised that what matters is how the borrowed money is used.
He wondered what was wrong if the borrowed money was invested in infrastructure development, in agriculture and energy.
President Lungu Investors using Corporate Social Responsibility to hoodwink the country cannot be tolerated adding that working with the private sector, civil service and all citizens, a country cannot fail.
Meanwhile, President Lungu has assured that other investors have expressed interest to invest in Konkola Copper Mines.
Other Panellists were during the discussion included President Paul Kagame of Rwanda, who concurred with President Lungu and Liberia’s Vice President Dr. Jewel Howard Taylor who agreed that Corporate Social Responsibility is being used by investors as a form of paying back instead of paying tax.
President Lungu said creating SDG Centres in Kigali, Lusaka and Monrovia will help enhance regional integration. The Center in Zambia is scheduled to be opened this year in August.
The President also discussed early child marriage saying in Zambia, traditional leaders are playing a critical role in addressing the matter.
He said role models like the Vice President of Rwanda should be used to show that women can succeed.
Responding to another question from the audience, President Lungu said Zambians should not take for granted the peace the country is enjoying and cited Rwanda as an example of a country that understands what it means to live without peace.
This is according to a statement issued by Special Assistant to the President for Press and Public Relations Isaac Chipampe.
Green Eagles goalkeeper Sebastian Mwange admits he will be the center of attraction in Saturday’s 2019 ABSA Cup semifinal doubleheader at Nkoloma Stadium in Lusaka following last week’s exploits at the 2019 COSAFA Cup in South Africa.
Eagles face 2017 winners Zanaco seeking their first ABSA Cup final qualification in the competition formerly known as the Barclays Cup.
Mwange returns to club action on June 15 a week after making a memorable international debut when he helped Chipolopolo win the COSAFA Cup on June 8 with a 1-0 win over Botswana in Durban.
His first three games in a Zambia jersey at the COSAFA propelled him from a relative unknown and into the spotlight after conceding just two goals in open play at the tournament where he also won the Golden Glove Award.
“I know the expectations from the fans will be very high and now it is up to be to prove to the fans that I am one of the top goalkeepers in Zambia,” Mwange told ZNBC Sports
“No, I don’t have any pressure because I know how football is. I know what I am capable of doing.
“It was not a fluke that I was at COSAFA, so I just need to stay calm and to work extra hard.
“It is just that expectations are high now from me from the fans.”
Winner of the Eagles-Zanaco match will face Buildcon or record five-time champions Zesco United in the final on June 22 at Levy Mwanawasa Stadium in Ndola.
Ministry of Tourism and Arts Permanent Secretary Howard Sikwela
Ministry of Tourism and Arts Permanent Secretary Reverend Howard Sikwela has called on the National Arts Council to harmonise the NAC Act Chapter 31 of 1994 with the Cultural Policy and enact it into law in order to protect the sector.
Speaking when he officially closed the Arts business forum at Government Complex this afternoon, Reverend Sikwela said the Cultural Policy is a matter of urgency and should be aligned with other laws.
Reverend Sikwel called on artists to perfect the production of art works to compete favourably on the local and global markets.
He said this is very cardinal in any business so that consumers are provided with quality product as way of self-regulation.
And Art Historian and Geo Politics Scholar Andrew Mulenga said the policy is key and need to be fed back to the relevant authority.
He said the conference like the Arts Business Forum is the first step in the right direction towards addressing issues affecting artists.
Mr. Mulenga said there is need for follow up programs to developed the sector and grow it.
And Artist Danny Kapambwe who is a qualified Electrical Engineer said the artists should not be looked down upon as they have the potential to employ many and growth the economy.
Ex-Chipolopolo star Collins Mbesuma has cautioned his former club Kaizer Chiefs not to put pressure on new signing striker Lazarus Kambole under pressure.
Kambole follows Mbesuma’s legendary footsteps at Chiefs after signing a three-year deal with the South African club from Zesco United.
Mbesuma said Chiefs must add more quality to complement the arrival of Kambole if they have any serious ambitions of ending their four-year drought for league honors.
“I am worried that they will expect him to go there and do miracles. These days when a club signs a high-profile player, there are huge expectations on that player,” Mbesuma told The Sowetan.
“I hope they don’t put him under too much pressure because it will be his first season outside of Zambia. I hope they give him time to adapt.”
President Lungu and his counterpart President Paul Kagame
President Edgar Lungu has held closed door talks with his Rwandan counterpart Paul Kagame.
President Lungu is in Rwanda for two days and is expected to attend a board meeting of the sustainable Development goals for Africa at Kigali Convention Centre today.
The Head of State will also be part of the Presidential panel alongside Mr Kagame and the Liberian Vice President Dr. Jewel Taylor and African Union Comission chairperson Moussa Faki Mahamat.
The Sustainable Development Goals in Africa is an international organisation that supports governments, civil society, businesses and academic institutions to accelerate progress towards the achievement of the Sustainable Development Goals in Africa.
The Ministry of National Development Planning is the Focal point Ministry to coordinate the establishment of the SDGC Sub-regional office in Lusaka that will cater for the SADC region.
President Lungu is expected to return home today after the meeting.
A legal practitioner has said government may not benefit anything from the Financial Intelligence if the Financial Intelligence Center (FIC) and Law Enforcement Agencies ” live in a community that is divided”
PF Chairman of the Legal Subcommittee of the Central Committee Brian Mundubile says unless the FIC and agencies of law enforcement harmonise their operations and stop jeopardising each other’s work otherwise their intended “congruent goals” may not be achieved.
Speaking in Kasama today, Mr. Mundubile said, if the FIC and Law Enforcement Agencies such as the Drug Enforcement Commission (DEC), Anti Corruption Commission (ACC) the Police and others are divided, their operations are likely to leave room for corruption, loss of credible evidence and that some people being investigated may even flee the country.
According to the Financial Intelligence Centre Act, 2016, in 2(a) a Politically Exposed Person (PEP) is an individual who holds ,or has held public office and includes a Head of State, Minister or Deputy, a Politician or a political Party official including a Judicial Official, a senior official of Quasi – Judicial body, a Military official, a member of an administrative, management or supervisory body of a state owned enterprise.
This also includes an individual who is or has been entrusted with a public function by the State, public body or local or international organisation, an immediate family member of a PEP or their close associates and this should not be misconstrued in a narrow sense even to the extent of believing that a PEP is a politician.
Clarifying on the functions of the FIC, the Legal Chairman of the ruling PF said, as per 5 (2)e of the FIC, its mandate is to educate the public and reporting entities of their obligations and inform them of measures to detect , prevent and deter money laundering and financing of terrorism *but this does not mean jeopardising the work of Law Enforcement Agencies to the extent of alerting culprits in the investigations Hon. Mundubile emphasised, adding, “because even if they are not named , they know themselves and their activities and could easily destroy evidence or flee the country”.
According to the annual report of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) , its mandate is to ensure it receives the information it needs to generate financial intelligence for Canada’s Police, Law enforcement and National Security Agencies.
Nada Semaan, Director and Chief Executive Officer reported that over the past year, 2017 – 2028, FINTRAC provided 2,466 disclosures of questionable financial intelligence support of money laundering and terrorist financing investigations across the country
Its mandate as a financial Intelligence unit of Canada, FINTRAC ensures that it safeguards the information that it receives and discloses to Canada’s Police, Law Enforcement and National Security Agencies while the Centre understands that the protection of privacy is critical to maintaining the confidence of Canadians.
It is very particular in reporting on the trends of crime and ensures that the public is not alerted or fore warned
On the other hand, Zambia’s FIC , in its 2028 report disseminated 80 reports of suspected Money Laundering and Terrorist Financing.
The Drug Enforcement Commission now argues that its concerned with the manner the FIC publishes raw intelligence data to the public which could jeopardise investigations.
DEC says the FIC report should not have been published in the manner it has been in the past few years and feel the information should have been disseminated to the rightful audience in line with a well throughout communication strategy to avoid speculation and undue pressure on the investigative wings.
It says the publication of raw intelligence data actually compromises investigations by law enforcement agencies.
Hon. Mundubile said the FIC and law enforcement agencies need to harmonise their operations in order that investigations are not jeopardised which would result into the country not benefiting anything from the financial intelligence reports. The parties need to coexist so that their overall “congruent goals” are achieved because consequently, that is the desire of the people of Zambia”
A 10 year old girl of Samfya district in Luapula Province has drowned on Lake Bangweulu. Lister Kalenga of Nshindano village in Chief Kasoma Bangweulu’s chiefdom met her fate while she was playing with her friends.
Disclosing the matter to ZANIS in Samfya, Luapula Province Police Commissioner Elias Chushi says the incident happened on Monday June 11, 2019 around 16:00 hours. Mr Chushi says the matter came to light when the father of the girl identified as Gibson Kalenga aged 36 years old, reported the matter to Police department in Samfya.
Information obtained by the Police indicate that the girl who was of unsound mind was playing outside their home with her siblings around 14:00 hours when she was seen running towards Lake Bangweulu near Malilangamo market.The Police Commissioner says the body of the deceased was later discovered floating in the deep waters of the lake.
Mr Chushi said the body of the minor had no visible injuries and has since been buried as no foul play was suspected.
The Financial Intelligence Centre (FIC) has given Zambians a report on Money Laundering and Terrorist Financing Trends in 2018. The Centre has done its part. It has laid bare the Patriotic Front (PF)’s theft matrix. What will Zambians do? Will we continue watching while our resources are being looted by a heartless minority? Where are the institutions created to uphold law and order and hold accountable officials that mismanage our resources? There must be a time when Zambians must say enough is enough. That time is now. The professional men and women in institutions such as the Zambia Police Service, Drug Enforcement Commission (DEC), and the Anti-Corruption Commission (ACC) must pluck some courage and do the right thing for mother Zambia. The right thinking Zambians will fight with you.
The report is telling us that trends (developments, tendencies, inclinations) in the mismanagement of national resources by those entrusted with the responsibility of serving us are similar to those in previous years and have increased. “In 2017, the Centre disseminated reports involving suspicious financial transactions valued at ZMW4.5 billion, increasing to ZMW 6.1 billion in 2018”. This could mean one or two things: the FIC has done a great job of assessing more suspicious transactions, and a few people in the PF have grown bolder over the years and now they steal from Zambians with impunity. They are stealing more and more because they know citizens will do nothing. They have learnt that “Zambians forget easily”.
A whopping ZMW 4.9 billion is attributed to bribery and self-dealing / Conflict of Interest. What it means is that the colossal amount of money was stolen through inducing, enticing, buying off and paying off individuals or entities providing goods and services. It also means that PF functionaries or Politically Exposed Persons (PEP) took advantage of their positions in the suspicious financial transactions. The few bad eggs in the PF acted in their own interests rather than in the interests of the rest of Zambians who should have benefited from the resources if they were applied to areas such as agriculture, education, health, paying retirees and many other important sectors. A few people with self-interest have stolen from the majority of Zambians. They can afford to steal with impunity because they hired themselves through a fraudulent political process while we as shareholders watched helplessly.
The public procurement activities reported show how the few PF cadre plunder our resources. They have ensured that they alone are the beneficiaries of the national cake to the exclusion of the rest of Zambians. The Government procurement process is managed fraudulently. Some individuals managing the process are full of deceit. They are dishonest and deceptive. The end product is illegality. Illegality has become the hallmark of the PF kleptocracy. The kleptocrats are using the power they gave themselves through the 2016 elections to exploit the majority of Zambians and our natural resources in order to extend their personal wealth and political powers. The few have embezzled funds at the expense of 16 million Zambians. The corrupt politicians are using their political power to receive kickbacks, bribes, and special favors at the expense of the majority of Zambians. Is it any wonder that Zambia is now witnessing the use of political leverage to pass laws that enrich them and their constituents? The circumvention of the rule of law has become a norm.
The Report points out the manipulation of certain specifications during the procurement process. Do you remember the 42 by US$ 42 million fire tenders and the ambulances fiasco, just to mention two among many?
The Report points out the manipulation of certain specifications during the procurement process. Do you remember the 42 by US$ 42 million fire tenders and the ambulances fiasco, just to mention two among many? The PF has been manipulating some specifications “to disadvantage other bidders” so that only the PF cadre benefit from the process. In the process legitimate businesses are denied opportunities to participate in tendering for supply of goods and services. When legitimate businesses are crowded out there is loss of business that may result in inability to employ or pay workers. Since the PF cadre dubiously give each other contracts it is not surprising that “most contracts are not performed as per contractual obligation.” There are many stories out there of PF cadres that get contracts dubiously and they fail to complete projects because they have to pay some PF Government officials at district, provincial and national level for their perceived role in facilitating the award of contracts.
The Report gives detailed methods by which the PF laundered funds. The PF theft matrix includes use of PF connected Shell Corporate Vehicles, PF connected gate-keepers, and Domestic Financial institutions headed by PF cadres and sympathizers. Some PF cadres and their associates own companies that are not operational and have no known addresses. Some of these companies “were used to obtain contracts from Government institutions and launder(ed) proceeds of crime.” Some of them were awarded contracts before they were formed. Some of these companies “were used to conceal the identity of beneficial owners.” The whole rot is a PF affair.
The rosewood (mukula tree) saga points to the same PEP. While the cutting down of the endangered species is officially under a ban, PF connected individuals and their foreign accomplices continue to plunder the resource to enrich themselves at the expense of poor communities. Imagine what ZMW 2,156,000 or a fraction of it would have accomplished in Manyinga and Mufumbwe. Many children in the two districts walk long distances to school, sit under trees or learn in dilapidated shacks, health facilities and services are almost non-existent, among other challenges.
The FIC Report for 2018 has shown Zambians that the PF is at the center of looting our resources. The big question will we continue to watch them loot at the expense of more than 16 million Zambians?
A Zambian company specialized in financial technology has signed a partnership agreement with MasterCard, a leading global electronic payment provider.
ProBASE Limited Chief Executive Officer Roy Muyelu signed on behalf of his company while MasterCard Division President-Southern Africa, Mark Elliot signed on behalf of MasterCard.
Speaking after signing the partnership agreement at a ceremony held at Melrose Arch in Johannesberg, South Africa, Mr. Muyelu said the partnership will enhance the facilitation and adoption of e-commerce growth in Zambia.
Mr. Muyelu said the business partnership with MasterCard will lower the cost of businesses involved in e-commerce in Zambia due to integrated payment platforms.
He added that the partnership will enhance government revenue collection through e-taxes and e-tolls as the company was currently the provider of the electronic payment systems that public institutions and other private players were using in Zambia.
Mr. Muyelu expressed confidence that the partnership with MasterCard will bring into the country leading international brands and standards that would facilitate cost effective methods of transaction.
He disclosed that MasterCard has committed to invest a significant amount of money in his company to facilitate technological support and training for members of staff.
Mr. Muyelu said MasterCard will provide training for his members of staff regarding latest technology and enhanced e-commerce security.
The signing ceremony was attended by Embassy staff who included First Secretary Trade Mande Kauseni the board Member Mr. Ngenda Nyambe, Chief Operations Officer Chola Bwalya and the ProBASE South Africa Business Development Officer Rowena Chordries.
MasterCard is a leading international payment system company providing its customers worldwide and region through its parent MasterCard incorporated.
This is according to a statement issued to the media by First Secretary for Press and Public Relations Naomi Nyawali.
The UK based Economics Intelligence Unit says it expects the ruling Patriotic Front, led by the President, Edgar Lungu, to remain in power beyond 2021.
In its latest Country Report for Zambia dated June 12th 2019, the intelligence unit states that the baseline forecast remains that Mr. Lungu will win in 2021.
Although the report cited some challenges with the Zambian economy –many of which are not unique to this country, the Patriotic Font administration led by President Lungu has come up with appropriate and timely interventions.
The Report says in taking corrective measures such as the liquidation of KCM, President Lungu.
The Unit says Investor confidence is something that President Lungu has continued to pursue as evidenced by his commitment to ensuring that the mining sector continues to be under the ambit of the private sector.
The Economics Intelligence Unit says victory for President Lungu and the Patriotic Front is further assured in the absence of a credible opposition.
A key member of the Economist Group, the Economist Intelligence Unit is a specialist publisher for 60 years and has proved to be a reliable source of information on business developments, economic and political trends, government regulations and corporate practice worldwide.
The African Development Bank (www.AfDB.org) remains strong with growing operating revenues and allocable income generated since 2010 reaching $2.5 billion, the Bank Group’s Treasurer, Hassatou Diop N’sele, stated on Thursday.
In 2018, the Bank earned $214 million in allocable income, 48% of which has been reinvested in the institution to reinforce reserves and its business growth capacity. The bullish numbers were revealed during the Bank’s Financial presentation Thursday, a highlight of the 2019 Annual Meetings of the Bank currently underway in Malabo, Equatorial Guinea.
The panel was led by N’sele and Simon Mizrahi, Director of Service Delivery, Performance Management and Results at the Bank.
During the presentation attended by delegates, Governors, Executive Directors and Bank staff, N’Sele noted that the Bank could chart a new path on account of its ability to raise funds on the capital markets. “The amount of infrastructure financing covered by private sector could double if African countries harness the full potential of their capital markets.”
According to N’sele, a number of African countries could save as much $1 billion on a 20-year loan, if they borrow from the African Development Bank, instead of from the Eurobond market, due to preferable lending rates.
Delegates were informed of the Bank’s successful issuance of the first-ever NOK social bond sold in Norway and sealed in 2018.
Despite challenges, Africa’s debt is still under control
On debt sustainability, Africa’s debt has increased in recent years “but not to unsustainable levels,” Mizrahi indicated but he pleaded for caution. “We need to continue to generate financing and spur growth without increasing debt.”
Sharing insights on Africa’s path forward, Mizrahi underscored the need to harness the continent’s incredible potential in renewable energy.
Africa is the most vulnerable continent and suffers the most from climate change but “with the right vision, investments and political commitments, Africa can lead a global energy revolution and leapfrog to renewable technologies. This is why the Bank is putting its money where its mouth is and investing more than any other development Bank in helping the continent transition towards more resilient and sustainable economies,” he concluded.
The African Continental Free Trade Agreement (AfTCA) ushering a new era in intra-African trade
According to Mizrahi, AfCTA paves the way to the world’s largest free trade area with an integrated market of 1.3 billion consumers.
“This is important because Africa will struggle to be competitive at the global scale, if it continues to operate as 54 fragmented economies. The continent needs to be more integrated, it needs larger economic spaces so that Africa can attract more investors, create more and better jobs, boost internal trade and create continent-wide value chains that are globally competitive.”
The panel moderated by the Victor Oladokun, the Bank’s Director of Communication, noted that AfCFTA is expected to boost cross-border infrastructure, drive competitiveness and make the continent a smaller place by integrating markets.
In her concluding remarks, N’sele expressed the Bank’s appreciation for Canada’s unwavering support to the institution with the recently announced $1.1 billion callable capital. “This will allow to continue to meet our financial ratio” before a decision is made on the 7th General Capital Increase,” she said.
We are, the continent’s only triple-A rated institution. Our rating means that our bonds are the absolute safest in the world. It gives confidence to investors across the globe that their investment in African Development Bank bonds is secured.”
The discussions included gender issues, especially the Bank’s flagship Affirmative Finance Action for Women in Africa (AFAWA) program, which seeks to mobilize $3 billion to close the financing gender gap for women entrepreneurs.
Source: Distributed by APO Group on behalf of African Development Bank Group (AfDB)
Nkana and U23 defender Moses Nyondo has described his Chipolopolo debut over the weekend as memorable despite being on the losing side.
Nyondo was one of two debutants together with Nkwazi defender Kebson Kamanga who started in the June 8 friendly against Cameroon that Zambia lost 2-1 in Madrid, Spain.
“I felt great after making my senior debut against after playing at Under-20 and Under 23 level. It was a totally difference experience,” Nyondo said.
“It is normal for one to be nervous being the first game at senior level but after the getting a couple of touches on the ball I was at ease.
“Everything is going smoothly , especially for us the new guys, it is a great experience learning from the seniors and we are looking forward to the next game on Sunday against Morocco.”
Nyondo could just start again on June 16 against hosts Morocco in Marrakech with doubts for experienced defenders Donashano Malama and Ziyo Tembo who are sidelined with injuries.
FILE: Mr Matt Pascal First Quantum Minerals Director of Operation with President Edgar Lungu during the Tour of Kansanshi Mine PLC in Solwezi on Friday 15-05-2015 Picture EDDIE MWANALEZA /STATE HOUSE.
Reuters reports that, according to government and industry sources, Zambia has no plans to seize the assets of Quantum Minerals Ltd and the copper producer intends to stay in the country despite the government’s move to wrest control of a rival miner.
Canadian-listed First Quantum has looked on nervously as the Zambian government appointed a provisional liquidator to run Vedanta’s Konkola Copper Mines (KCM), claiming KCM has breached the terms of its license.
The move has unnerved international miners concerned about rising resource nationalism in Zambia and neighboring countries.
First Quantum, scarred by having its operations in Democratic Republic of Congo seized in 2010, is embroiled in a dispute with the Zambian government after being handed a $5.8 billion bill last year for unpaid import duties.
“The government will not touch First Quantum,” one source close to the government said. “Vedanta is very different from First Quantum.”
Among the international miners, First Quantum has the most to lose in Zambia, which accounts for 83% of production from the company’s operating assets this year, excluding a new project in Panama.
But the company also has bargaining power as the most profitable miner in Zambia and the biggest tax payer.
In 2018, it said it paid more than $533 million in taxes to the Zambian government, including royalties, income and corporate tax.
Two sources close to the company, who requested anonymity because of the sensitivity of negotiations, said First Quantum would stay, but would freeze investment and might put operations on hold.
“They’ll not go. They are here for the long term,” one of the sources said.
Still, the company cannot mine at a loss, and, if necessary, would suspend production and cut jobs, shrinking the tax revenues Zambia desperately needs as its debts mount, one source said.
A First Quantum spokesman declined requests for comment.
No one from the Zambian government was immediately available for fresh comment.
The Zambian government has increased taxes and said it will switch to a non-refundable sales tax, from a refundable value-added tax.
First Quantum has said the tax changes will add about 10 cents per pound of copper in 2019 to its costs and between 15 cents to 18 cents per pound in following years.
At the time of its first quarter results in April, First Quantum CEO Philip Pascall said the company would be “very cautious” about capital expenditure in Zambia.
Pascall, who attended boarding school in Zimbabwe, has weathered previous changes in the Zambian tax regime and the sources say he will do so again.
“That’s the smart thing to do to wait for relations to be less toxic,” another of the sources said.
So far First Quantum has retreated from threats to shut in production in favor of negotiations.
First Quantum’s open-pit Zambian operations, Kansanshi and Sentinel, are projected to produce 235,000 tonnes and 250,000 tonnes of copper annually, respectively. The company expects an all-in sustaining cost of $1.70-$1.85 per pound, excluding the planned Zambian sales tax.
This is profitable even with copper prices currently around $2.65 per pound or roughly $5,900 per tonne.
‘CASH COW’
Analysts say First Quantum is undervalued. Its shares have fallen 35% from a peak in April, nearly double the loss on the benchmark Solative Global Copper Mines index.
“The shares have fallen because of a total misunderstanding of the situation,” said Charl Malan, an analyst at VanEck Global Investors, one of the company’s top 10 shareholders.
“First Quantum is not going to lose its assets. It is profitable, it is paying salaries and paying taxes… First Quantum won’t sell the Zambia assets. Zambia is their cash cow.”
The sources and the industry as a whole, however, acknowledge Zambia is high-risk as it grapples with mounting debts and as politicians are already positioning ahead of elections scheduled for 2021.
Vedanta has said its KCM unit is “largely unprofitable”, although it has paid taxes through its payroll and says it has invested in the business.
Vedanta Resources, part-owner of the Mumbai-listed Vedanta group of companies, has also said it will vigorously defend itself and has threatened international arbitration in response to the Zambian government’s intervention in KCM.
Mining Minister Richard Musukwa has said the Vedanta case is “a signal to other mining companies not complying with the law to put their houses in order.” He has not explicitly said any miners are safe from government intervention.
