FQM royalties, dividends and taxes surge

First Quantum Minerals (FQM) has reaffirmed its commitment to transparency and sustainable development by announcing US$727.8 million of contributions to the nation in 2023.

According to the company’s latest Tax Transparency and Contributions to Government Report, FQM’s contributions to the economy and local communities through its Kansanshi copper mine in Solwezi, Trident projects in Kalumbila, as well as First Quantum Mining and Operations (FQMO) has increased.

In 2023, FQM’s Kansanshi contributed US$153.3 million, while FQM Trident contributed US$263 million in taxes and royalties. Of the royalties paid at Kansanshi, US$47.7 million was paid to ZCCM-IH, in addition to US$7.2 million paid to ZCCM-IH in dividends.

Payroll taxes for the Kansanshi and FQM Trident were US$40 million and US$40.1 million, respectively. Net contributions to the Zambia Revenue Authority amounted to US$264.5 million in taxes and royalties, and a further US$80.1 million in payroll taxes.

Other payments to the government included US$2.8 million and US$18.9 million to the Ministry of Mines and Mineral Development and Ministry of Land and Natural resources, for statutory fees. Consumption and import taxes (including non-refundable VAT) amounted to US$115.8 million.

CSR and Infrastructure spend during 2023 was at US$24.4 million, in line with FQM’s commitment to responsible mining and supporting host communities.

“This report underscores our steadfast commitment to responsible mining practices and sustainable development in Zambia,” said FQM Country Manager Dr .Godwin Beene.

“We are proud of the significant contributions we continue to make to the Zambian economy and local communities, and we remain dedicated to fostering mutually beneficial partnerships and driving positive change.”

Dr. Beene emphasized the mining company’s deep-rooted understanding that success is tied to the prosperity of the communities in which it operates.

He underscored: “That’s why we steadfastly prioritise transparency, accountability, and sustainability in all our operations.”

Beyond financial contributions, FQM has also prioritised community development initiatives aimed at fostering sustainable development and improving the quality of life for communities surrounding its operating sites.

These initiatives include investment in community programmes, direct economic contributions to the Zambian government, support for local workforce development and skills training, and a focus on key areas such as health, education, infrastructure development, livelihoods, women’s empowerment, safety, human rights, and biodiversity preservation.

This transparency report serves as a testament to FQM’s ongoing efforts to uphold the highest standards of corporate governance, accountability, and ethical conduct, Dr. Beene added.

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