FQM to invest $3 billion in Sentinel mine, smelter

FIRST Quantum Minerals (FQM) will invest US$3 billion to build Sentinel Mine and a smelter at its flagship operation, Kansanshi Mine aimed at increasing productivity, head of tax Adam Little has said.

Mr Little said the investment was also expected to augment the mining company’s tax contributions to Government, which currently stands at $2 billion from 2006.

“With more than $3billion to be invested to build Sentinel Mine, a smelter and upgrades at Kansanshi, FQM’s tax contributions will be significantly augmented,” Mr Little said in a statement released by FQM public relations consultant, Davies Mulenga.

The mining company also reiterated its commitment to continued dialogue with all stakeholders affected by its operations to ensure existence of a balanced relationship.

“FQM also recognises that there is need for a balanced relationship between the company and all its stakeholders, and so we will continue to pay taxes at Kansanshi, and we will also pay them at Sentinel Mine,” he added.

Kansanshi became profitable in 2005 and has since paid more than $2 billion in taxes in Zambia.

FQM pays a mineral royalty tax (MRT) at six per cent which is calculated on revenue and after deducting the MRT, the company pays a profit tax at 30 per cent of profits with a further a variable profit tax of up to 15 per cent, also charged on profits.

[times of zambia]