First Quantum given time to solve $7.9bn Zambian tax row
JOHANNESBURG – Zambia agreed to give First Quantum Minerals more time to complete its analysis of what the company might owe the southern African nation after it was slapped with a $7.9-billion tax bill, according to the Finance Minister.
The Vancouver-based company is challenging the assessment from Zambia’s revenue agency, which claims First Quantum incorrectly declared imports for one of its two mines in Africa’s second-biggest copper producer. The government has audited major mining companies operating in the country, which include Vedanta Resources and Glencore.
“They are doing their own analysis and they have asked for a bit more time,” Finance Minister Margaret Mwanakatwe, 56, said in an interview in her office in Lusaka, the capital, on Thursday. “We have given them a month so that they can complete the analysis.”
Copper accounts for more than 70% of exports in a nation that’s battling to contain ballooning external debt after spending on projects to boost infrastructure. Higher copper prices have helped support the economy after a slump from 2014 curbed income, added to debt and prompted the government to ask for assistance from the International Monetary Fund.
The government is seeking to expand revenue collection as it moves to keep its budget deficit to gross domestic product ratio under 10%, while ensuring it maintains its obligations to businesses, Mwanakatwe, said.
While the Zambian Chamber of Mines says the government owes mining companies more than $350-million in value-added tax refunds, the revenue authority has warned it won’t pay out where liabilities are outstanding. First Quantum estimated it’s owed $368-million in unpaid VAT refunds.
First Quantum, which operates the Kansanshi and Kalumbila mines in the country, accounted for more than half of Zambia’s copper production last year and is the biggest individual taxpayer.
Comments
The
functionality
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation