Maravi

Kansanshi mine sues govt

Kansanshi mine sues govt
Written by Chiwoyu Sinyangwe
Monday, February 09, 2009 2:51:41 AM

KANSANSHI Copper Mines which is run by First Quantum Minerals has sued the government, demanding that Zambia restores the Development Agreement signed between the two parties.

Finance minister Dr Situmbeko Musokotwane disclosed the development in Parliament last week when responding to questions on the ongoing debate of the 2008 national budget.

“On the revenue that was collected, the revenue that was indicated for Kansanshi is a source for a litigation because the mining company (FQM) has indicated that there was a development agreement signed and they have chosen to go for arbitration, so the amount is an escrow account pending the resolution of this dispute,” Dr Musokotwane said.

And some sources within Ministry of Finance and National Planning also confirmed that revenue the government had been collecting from First Quantum Minerals from the 2008 mining fiscal regime was being deposited in the escrow account.

“There are no proceedings yet but Kansanshi have been depositing the purported new taxes in an escrow account obviously pending determination by the tribunal. That is all I can say, but you can get full details from the Dr Musokotwane,” said the sources. “But all I understand is that they are being represented in Zambia by Corpus Globe while in the United Kingdom, they are being represented by a law firm called Ashurt LLP.”

First Quantum Minerals which also operates the flagging Bwana Mkubwa mine had been the ardent opponent of the popular 2008 mining fiscal regime introduced by the government insisting that the government of Zambia restore the Development Agreements signed with the mining companies.

Labels: DEVELOPMENT AGREEMENTS, KANSANSHI MINING PLC, MINING, NEOCOLONIALISM, SITUMBEKO MUSOKOTWANE

posted by MrK @ 2:51 AM