FOR IMMEDIATE RELEASE
WITH PICTURE
OCTOBER 19 2021

NEW GOVERNMENT’S PRO-MINING STANCE WINS UK PRAISE

SOLWEZI, ZAMBIA – The new UPND government has been praised for its pledge of far-sighted and strategic support to Zambia’s mining sector by the UK government’s Trade Envoy to Zambia and Angola.

Speaking as he visited First Quantum Minerals (FQM) Kansanshi Mine in Solwezi, Laurence Robertson MP praised the improved business environment and congratulated the government for its decisive moves to encourage a new era of mining investment for the benefit of all Zambians, just two months after it was elected.

“The new Government seems totally convinced of the need to create an attractive environment for those businesses which are already here, and which will continue to invest and make new investments; as indeed they will need to do. But also, they are equally convinced of the need to attract new businesses to Zambia,” said Mr Robertson.

He added that any business will be attracted by a good and proper functioning business environment, which includes fair taxation policies and realistic licensing conditions that ensure stability so that businesses are able to predict as their investments go forward.

Mr Robertson, who is leading a high-level delegation to meet with Zambian leaders and cement business ties between the two nations, was accompanied to Kansanshi by British High Commission Head of Economic Growth and Prosperity Team Sarah Bloom, Department for International Trade Mining Sector Director – Africa Sally Bevington and Dr Godwin Beene, FQM Government Affairs Specialist and President of the Zambia Chamber of Mines.

The delegation met with senior mine management including General Manager Anthony Mukutuma and Environmental Manager Arnold Malambo, visited the open-pit operations, processing plant and smelter, and toured Kansanshi Foundation community development initiatives, including the Nsanshi Arts jewellery workshop and Kabitaka School.

Mr Mukutuma thanked the UK government for its continued support and reiterated FQM’s long-term commitment to Zambia, buoyed by the new UPND government’s pro-mining stance, which paves the way for planned expansion plans at the mine.

“A visit like this by the UK trade envoy means a great deal; it’s an outstanding opportunity to showcase a mining operation running to World-class standards,” he said.

Mr Mukutuma added that FQM has been talking about an expansion at its Kansanshi mine since 2012, and that the company has been in close talks with government about the changes to the mining tax regime which would be required to unlock this huge investment.

“A range of measures are required, but principally there is a need to make mineral royalties deductible against corporate tax; and also to reform the mineral royalty the sliding scale, both in the way it is applied and the actual royalties themselves, the international norm for royalties on copper mining being between 3 and 6 percent.

These changes would make the tax regime competitive, but then they will also need to locked-in and provide investors with some assurance of stability. Similarly, we also need to see the restoration of discipline on VAT refunds, and a guarantee that those refunds are repaid on time. These are the discussions we’ve been having with the UK trade envoy, and they are the same discussions we’ve had earlier in the week with the Zambia Minister of Mines. We are positive that our message, and that of the broader mining sector is being heard and the changes that we are looking for can be made,” he continued.

Mr Robertson and his colleagues learned of the direct impact of the mine’s success on local communities, as well as its wider economic impact.
Kansanshi Mining has paid US$4.9 billion in taxes to the Zambian government since 2005 and invested US$5.4 billion in the mine and smelter. It provides more than 8,000 jobs.

The Kansanshi Foundation has also spent over US$30 million on community development programmes to improve the health, education, livelihoods and quality of life of its employees, their families, and communities.

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About First Quantum Minerals Ltd
First Quantum Minerals Ltd is a global metals and mining company producing mainly copper, gold and zinc. The company’s assets are in Zambia, Spain, Mauritania, Australia, Finland, Turkey, Panama, Argentina and Peru.
In 2020, First Quantum globally produced 779,000 tonnes of copper, 265,000 ounces of gold and 13,000 tonnes of nickel.
In Zambia it operates the Kansanshi mine – the largest copper mine in Africa by production – and smelter and the Sentinel mine in Kalumbila.
The company is listed on the Lusaka and Toronto stock exchanges.
http://www.first-quantum.com/

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