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$650 Million to be Injected into the Kansanshi Mine by Free Quantum Minerals in a way to Plait Copper Production Venture in Zambia
Posted On 23 Sep 2020
By Abdul Rahman Bangura–
Photo Credit: Mining Technology
NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone– In a way to make twice as much of copper production. And in a bid to make an extension of the Kansanshi Mine, to twenty-four years, under the 2023/2024 business calendar, it’s important to note that, the Free Quantum Minerals have endorsed to pump $650 million to the investment in question. Nonetheless, the mining goliath has advised shareholders that the extension of the operation can only go forward, if the company is optimistic of a robust fiscal dynasty, that will in veer around to enact capital availability.
Kingsley Chinkuli – FQM Country Manager General asserted, the most crucial component of starting again projects that slowed and making Zambia’s mining sector attractive to investors is the necessity for an active tax and stateliness government. He noted that long-term private sector investment is anticipating what costs would be for the life of the investment.
“Works on the Sulphide No 3 (S3) treatment plant at Kansanshi Mine, in Solwezi, NorthWestern Province, was halted in 2013 as a result of market conditions and a challenging fiscal environment. The earthworks, foundations, steelworks and the filtration facilities (currently operational) for the S3 Expansion were completed before work stopped,” he expressed. He noted, Mines across the world need continual venture in hardware, exploration, and modernization.
“When the global economy presents challenges, as it can be depended on to do so, whether as part of the global financial crises or else through the so-called commodity super-cycle, it falls to governments to make their jurisdictions the most attractive in which to place their investment,” General Chinkuli noted.
In excursus, General Chinkuli confirmed that, the mining corporation’s annual tax subsidies without the S3 expansion project and MRT non-deduction remaining in place, is totaled to be around $200 million, but if the extension project moves ahead and MRT non-deductibility is removed, the tax subsidies could be well in excess of $300 million and probably loftier the more wobbling on market conditions.
“Indeed, tax contributions over the five-year period are expected to be up to 45% higher with the S3 project, but this would require a competitive tax code for its approval,” he bolstered.
On the same vein, General Chinkuli affirmed, once the project has been finalized in 2024, the mine is required to be eliciting between 220,000 and 280,000 metric tones of copper per annum from 2024 to 2028. And that, the FQM expended over K7 billion in taxes and royalties to the Zambian government in 2018, exemplifying almost 40% of total earnings made by the extractive industry, solidifying its status as the nation’s biggest taxpayer.
For New Africa Business News (NABN) Abdul Rahman Bangura Reports, Africa Correspondent
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Thank you for the report. As an African and Kenyan. I don’t like how China is taken advantage of Zambia. Wake up government of Zambia. Ken in Nairobi, Kenya
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Here we go again, Zambia. Hope this deal is not like China Zambia deals. As most of us know in the continent, government of Zambia took $8 Billion debt from China for infrastructural projects, Zambia could not pay China as agreed. Now Zambia gave China unrestrained control over Zambian resources owing to over borrowing and you got it unfiltered immigration of Chinese into Zambia. Warning to other Lazy African so call Presidents. Lagos Nigeria. Benita
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Sad! $8 Billion loan by Zambia equals to Colonization. That’s what a country gets when it’s people elected a lazy leaders. Not again! Thank you very much for reporting. Cape town South Africa. Jenna
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Thank you for the newsletter. Love it. Settat in Morocco. Hassan
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Currently China is controlling Zambia’s STATE OWNED TV, RADIO, ZNBC, LUSAKA INTERNATIONAL AIRPORT,STATE’S ELECTRICITY COMPANY AND SEVERAL OTHER STATE OWNED. China will never allowed Zambia or any African country to take control of it’s state own. Accra Ghana. Kobby
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Enjoy reading your reports. Fan of your online newspaper. Thank you all. Fellow Africans, the biggest problems with China’s corrupt operations in our great Continent is the fact that many of the deals are done in secret with our leaders. In the Continent these leaders are signing secret loans with China to build infrastructural projects, telling their citizens is developments and these projects if for any reason is not paid on time, China would immediately claim whatever in the deal, first of all China would claim, main ports of entries, sea ports and airports, then to the state own medias, tv’s, radios and newspapers. George South Africa. Audre
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I totally agree. China is the biggest threat to our great Continent, with these rubber stamps corrupt leaders. Thank you for covering the whole Continent. Please continue covering our great Continent. Africa needs your service. Thank you for responding to my emailed. Kigali Rwanda. Hebron
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