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, May 29, 2024 in
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Zambia: FQM DISCLOSES RECORD CONTRIBUTIONS TO ZAMBIA IN 2021

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Zambia’s largest taxpayer, First Quantum Minerals (FQM), paid more than US$1.258 billion in public contributions to Zambia in 2021.

The total amount equates to ZMW 21.4 billion at current exchange rates, and is made up of taxes, royalties, duties and fees paid to national and local government, dividends to ZCCM-IH, as well as the company’s social investments and infrastructure expenditure in North-Western Province.

Despite a decline in Zambian copper production during the year, surging copper prices led to a significant increase in public contributions, from the US$850 million paid in 2020. FQM’s annual Tax Transparency and Contributions to Government Report shows that the largest contributing items to the fiscus were $386 million in royalties (ZMW 6.56 billion), and $368 million (ZMW 6.25 billion) in income taxes.

The total amount equates to ZMW 21.4 billion at current exchange rates, and is made up of taxes, royalties, duties and fees paid to national and local government, dividends to ZCCM-IH, as well as the company’s social investments and infrastructure expenditure in North-Western Province.

Despite a decline in Zambian copper production during the year, surging copper prices led to a significant increase in public contributions, from the US$850 million paid in 2020. FQM’s annual Tax Transparency and Contributions to Government Report shows that the largest contributing items to the fiscus were $386 million in royalties (ZMW 6.56 billion), and $368 million (ZMW 6.25 billion) in income taxes.

The Extractives Sector Transparency Measures Act (ESTMA) has since 2015 required Canadian-listed natural resources companies to publicly disclose tax payments made to foreign and domestic governments. The Act illustrates the benefit to countries like Zambia of having responsible investors, listed in jurisdictions with a strong rule of law, that insist upon strong corporate governance and compliance with international standards.

FQM strongly supports transparency initiatives and also actively participates in the Extractive Industries Transparency Initiative (EITI) in Zambia, an international standard that requires governments and companies to report key information about the extractive sector.

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