Kansanshi : a good corporate citizen
By Nawa Mutumweno – Kansanshi Mine, a Canadian First Quantum Minerals (FQM) subsidiary, in Solwezi, north-western Zambia, pays about ZMK8 billion in various taxes to the country’s Treasury.
According to FQM country manager General Kingsley Chinkuli, the mininhg firm has to date paid up to ZMK8 trillion in various taxes to the Government since attaining a tax-paying position half a decade 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 $1.6 billion (about ZMK8 trillion) to date,” Gen. Chinkuli pointed out.
“First Quantum is a home-grown company and its operations has made a significant contribution to the people of Solwezi. We have a workforce of approximately 1 300 plus the sub-contractors,” he added.
And FQM has spent about ZMK 23 billion for the rehabilitation of the Chingola-Solwezi road. It has also set aside about ZMK35 billion for the upgrading of the Solwezi Airport to international standards.
“We have plans to turn Solwezi Airport into an international airport. We are currently upgrading the runway to a level where it can handle a Boeing 737 and for that project we have budgeted ZMK35 billion for the upgrade of the runway,” said Godfrey Msiska, Kansashi Mine public relations manager.
The mine has also invested in the upgrade of Solwezi General Hospital at a cost of ZMK11 billion.
Kansanshi Mine, the largest copper mine in Africa, is 80% owned by FQM with the remaining stake being under the control of ZCCM- Investments Holdings.
FQM purchased Kansanshi form Phelps Dodge in 2001 and commenced production in 2005, and soon afterwards made profits and begun paying taxes to the Government. To date, Kansanshi remains the only mining company that pays dividends to the Government for the 20% shareholding held via ZCCM-IH.
