Maravi

First Quantum seeks solution to its future investment uncertainity

First Quantum seeks solution to its future investment uncertainity
By Kabanda Chulu
Friday February 29, 2008 [03:00]

FIRST Quantum Minerals, the holding company of Kansanshi and Bwana Mkubwa copper mines, has urged the Zambian government to resolve the uncertainty over its future investments following the introduction of windfalls taxes. Last month, the Zambian government proposed a number of changes to the country’s tax regime relating to the mining industry.

First Quantum president Clive Newall yesterday stated that there was urgent need to hold talks with government officials in order to resolve uncertainties over the future of its investments.

“Among other things, the government is proposing an export levy on concentrates, a windfall tax that is triggered by higher metals prices and increases to the royalty rate and standard income tax rate, Newall stated. “And the impact of the changes, if they were enacted into law, on the company, is not clear yet, but they can be material, so First Quantum would like to have discussions with a number of government officials, both to assess the situation and to attempt to influence the outcome.”

First Quantum Minerals had six operational mines, including the Kansanshi open pit copper and gold mine, the Nkana underground copper mine and cobalt refinery, the Mufulira underground copper mine, smelter and copper refinery, the Bwana Mkubwa mines in Ndola, the Lonshi open pit and Frontier copper mine in the DR Congo and the Guelb Moghrein copper-gold mine in Mauritania.

Labels: FIRST QUANTUM MINING, WINDFALL TAX

posted by MrK @ 3:41 AM