Zambia’s largest taxpayer, First Quantum Minerals (FQM), was responsible for more than a third of government income from the mining sector in 2015, accounting for K3.3 billion of revenue to the State.
The company’s contribution to the nation’s coffers is expected to have risen further in 2016 with the increased copper production from its Sentinel Mine in Kalumbila.
According to analysis by the Extractive Industries Transparency Initiative (EITI) ten companies contributed approximately 88 percent of total government revenues from the extractive industries sector in 2015, with FQM’s Kansanshi Mining accounting for almost 23.60 percent of the total extractive revenues for the year from mineral royalties, income tax, pay-as-you earn (PAYE), VAT, customs duties and other taxes and fees.
“These figures demonstrate the importance of the mining sector as a whole, and First Quantum in particular, to the nation’s economy. They also emphasise how vital it is to ensure that the sector and the companies within it remain robust and profitable,” said First Quantum Country Manager General Kingsley Chinkuli.
“What’s good for First Quantum is good for Zambia,” he added.
In addition to being Zambia’s largest taxpayer, First Quantum produces around half of the nation’s copper. The red metal accounts for 60 percent of Zambia’s exports.