Maravi

Kansanshi pays about K8bn in taxes daily - Gen Chinkuli

COMMENT - If FQM rehabilitated Chingola-Solwezi road, and it's trucks use that same road, it is just a business expense. Also, does this 'K8 billion' include the taxes that their workers pay on their incomes (PAYE)? If so, those are not taxes paid by FQM, any more than taxes paid by copper buyers are paid by FQM or anyone else.

Kansanshi pays about K8bn in taxes daily - Gen Chinkuli
By Bright Mukwasa
Wed 28 Dec. 2011, 13:20 CAT

KANSANSHI Mine pays about K8 billion in various taxes to the Treasury on a daily basis, says First Quantum Minerals country manager General Kingsley Chinkuli. And First Quantum Minerals has spent about K23 billion for the rehabilitation of the Chingola-Solwezi road.

Speaking when he, together with Kansanshi Mine public relations manager Godfrey Msiska, toured The Post Newspapers offices in Lusaka on Friday, Gen Chinkuli said his company had to date paid up to K8 trillion in various taxes to the government since attaining a taxpaying position over five years ago.

"The projections were that we will make profits after five years, but we did that in 18 months and immediately started paying taxes. We have so far paid US$1.6 billion (about K8 trillion) to date," Gen Chinkuli said.

He said the company had an ambitious expansion drive that could see many young people given a chance to be employed in the next few years.

"First Quantum is a homegrown company and its operation has made a significant contribution to the people of Solwezi. We have a workforce of approximately 1,300, plus the sub-contractors," Gen Chinkuli said.

He also observed that the view that mining companies were not contributing much to the communities they operated in was a debate that could be allowed for people to suggest which areas the companies could contribute development to.

General Chinkuli also said he was hopeful that relevant authorities would work to develop infrastructure in Solwezi that could accommodate the pressure that has been brought as a result of expanding industrial base in the province and Solwezi in particular.

And Kansanshi Mine has set aside about K35 billion for the upgrading of the Solwezi Airport to international standards.

Kansanshi Mine public relations manager Godfrey Msiska said the company was currently involved in community development projects such as the training of youth in various skills.

"We have plans to turn Solwezi airport into an international airport. We're currently upgrading the runway to a level where it can handle a Boeing 737 and for that project we have budgeted K35 billion for the upgrade of the runway," Msiska said. "Of course we expect government and other stakeholders to come in."

He said the mine had also invested in the upgrade of Solwezi General Hospital, a project that would cost K11 billion.

"We have projected to spend about K30 billion on health, social welfare and infrastructure development like the maintenance of Chingola-Solwezi road. We have spent K23 billion on maintaining this road. For instance the Kibombenene area, the road was totally eaten up, but we have put a bridge and culverts," said Msiska.

Kansanshi mine, the largest copper mine in Africa, is 80 per cent owned by Kansanshi Mining PLC, a First Quantum subsidiary while the remaining 20 per cent is owned by a subsidiary of ZCCM. First Quantum bought Kansanshi Mine from Phelps Dodge in 2001. It started production in 2005, and soon afterwards made profits and begun paying taxes to the government. To date, Kansanshi is the only company that pays dividends to the government for the 20 per cent shareholding held via ZCCM-IH.

Labels: FIRST QUANTUM MINING, KANSANSHI MINING PLC, TAXATION

posted by MrK @ 5:12 PM