First Quantum Minerals (FQM)
First Quantum Minerals (FQM)

IT’S BOZA. FQM IS PUTTING BUTTER ON OUR FACES

By Miles B. Sampa, MP

Foreign Mine Investors are like a Religion with one doctrine. ‘Thou Shall be Clever and Pay close to Zero Tax’.

The over $1BN FQM promissory ‘investment’ into our Copper still underground will be spent on equipment and machinery bought from group companies abroad. They also ‘pay’ 16% VAT on their operational costs like ZESCO power, cement or other local goods. Then FQM will claim 16% VAT on their ‘capital goods’ and operational costs. Since ‘their’ Copper is sold abroad, they will pay 0% VAT and then owed hugely (16%- 0%) on VAT Refund from ZRA or our Treasury. As it is, their promissory over $1BN investment is on condition that the Zambian Government starts paying their backlog VAT refund that is in billions from explained book keeping tricks globally called Transfer pricing or ‘Clever’ accounting.

Once ‘refunded’, they will then ship the same equipment out of Zambia to another Country of their Copper ‘investment’ interest to claim similar tax benefits.

Easy money made or taken from Zambians by FQM and zero actual money brought into Zambia by FQM.

This Copper mining industry can be a ‘mafia’ World. One needs welding goggles or reverse sparks can burn their eyes. Yes it’s not a today but historical problem. We tried with the SI 55 about 2012 that got reversed within 2 weeks. Then we tried with the Sales Tax about 2018 to replace VAT for mines but also got reversed within 2 weeks. Yes the Mines ‘Mafias’ are that powerful.

At the rate recent events in the mining sector are going, can our current Government even introduce a single reform that would not be in the interest of these Mine owners but pro Zambians, the answer is a big No. Maybe they are wise. Don’t play with the Mineral Mafias. Safety ‘kulisunga wemwine’. Since Patrice Lumumba Congo DR has permanently been arm twisted on their Copper.

The notion that these Copper mine investors once given tax concessions will help boost our Copper production from below 1 million to 3 million metric tones is a myth.

After 10 years when the tax concession expires, they will bolt (run away) like Anglo America did on KCM, Glencore on Mopani and Vedanta was about to do on KCM by first attempting to arm twist Government and not pay incremental tax. That was when Boma said enough was enough and moved in via receivership to recover ‘hidden’ or withheld tax for Zambians.

It’s a closed global money shop and the Mines Global cartel together with their big ‘uncle’ IMF would and will never allow us to re-own and run Mopani and KCM mines given the sudden surging copper prices arising from the Ukraine war and demand for electrical car batteries made from Copper cathodes.

Meanwhile as at today when Mopani
and KCM are technically being run by our own Muntu Zambians, my estimation is that they are each making about $100 million turnover per month. Both mines have documented copper reserves underground that can be mined for at least the next 25 years. Yet to be detected reserves is another 50 years for each.

These mines are very viable or bankable projects. Zambia can seek capital injections with this ‘viable mines’ story direct from the same global Banks where these briefcase investors borrow from. They come empty handed and use these mines ‘viable story’ to borrow upfront.

I believe and dream however that One day, We will rise like an Eagle to be like the number one global Copper producer Chile based in South America. Chile Copper status was same as Zambia 30 years go but while we have remained at the same level below 1 Mt/a, they are now over 3 millions tones in productions much to the benefit of its citizens. This so only because they were proactive in saying NO to foreign dodgy investors and own most of their Copper Mines.
One day in Zambia oloso, ‘what belongs to Caesar will be paid to Caesar’.

Make no mistake. These Mine Foreign Investors pay a lot of cash dollars to some amongst us to defend them when one amongst us try to speak against their doctrine of ‘thou shall be Clever and Pay close to Zero Tax on their Copper’.

Zikomo🙏🏽 for reading the plain truth anyways.

Together We Can

MBS10.05.2022

14 COMMENTS

  1. I AGREE WITH YOU MILES IN THE SENSE THAT I KNOW FQM INSIDE AND OUT.

    THESE GUYS ARE THE NEW CHINESE IN TOWN AND THEY WILL STOP AT NOTHING EITHER THAN TO EXPLOIT US AS ZAMBIANS.

    ALREADY THEY HAVE PROVEN TO BE STUBBORN WHEN IT COMES TO POOR CONDITION OF SERVICE OF THEIR EMPLOYEES.

    I HAVE BEING WITH FIRST QUANTUM MINERALS FOR A DECADE NOW AND I SWEAR I KNOW WHAT I AN TALKING ABOUT.

    THIS MINING FIRM IS GOOD AT IMPOSING BAD POLICIES ON ITS EMPLOYEES AND IS KNOWN FOR BUYING OFF GOVERNMENTS SO THAT NO ONE QUESTIONS OR QUERIES WITH THEM.

    CURRENTLY THIS MINE DOES NOT PAY BEFITTING BENEFITS TO ITS EMPLOYEES (PENSION) NOR DOES IT PAY ITS EMPLOYEES WELL SO THEY CAN SETTLE WELL AFTER RETIREMENT.

    MOST OF THOSE PEOPLE THAT YOU SEE THAT WORK FOR FIRST QUANTUM MINERALS AND ARE DOING FINE ARE EITHER STEALING FROM FQM OR THEY ARE THE OPPRESSORS THAT ARE STANDING IN THE WAY OF FELLOW EMPLOYEES.

    TRUST ME THIS MINING FIRM HAS NO ORDER NOR DIRECTION FOR ITS EMPLOYEES AND THATS WHY KABILA CHASED THEM FROM THE DRC CONGO.

    THE SO CALLED PLEDGE BY FQM ISNT FOR US THE ZAMBIANS BUT FOR FQM ITSELF.

    THIS IS A KIND OF COMPANY THAT WILL PAY A ZAMBIAN EMPLOYEE LESS THAN THEIR BASIC PAY AND EXPECTS YOU TO SURVIVE WHILE ITS PAYING UNQUALIFIED EXPATRIATES TEN OR TWENTY TIMES MORE THAN ZAMBIANS.IN ADDITION THESE EXPATRIATES GET AIRTIME AND A WEEKEND ALLOWANCE THAT IS EVEN MORE THAN A ZAMBIAN’S SALARY.ALL THESE MONIES / DOLLARS ARE EXTERNALIZED LEAVING ZAMBIA UNDEVELOPED.

    I WANT TO BELIEVE THAT MOST OF FIRST QUANTUM MINERALS EX EMPLOYEES ARE LAUGHING AT THIS DEAL AND ARE WONDERING AS TO WHAT IS GOING ON IN BALLY’S HEAD.

    WITH THIS ONE HE HAS REALLY MESSED UP.HE SHOULD HAVE COME DOWN TO US THAT WORK AND KNOW THIS MINING FIRM.

    KNOWING FIRST QUANTUM MINERALS EMPLOYEES WILL BE IN FOR IT NOW THAT THEY HAVE A CONNECTION WITH STATE HOUSE.LETS WAIT AND SEE.I SWEAR I KNOW THESE GUYS

    *ILLEGALITIES
    *CORRUPTION
    *INTIMIDATION
    *LOW WAGES
    *NO BEFITTING PENSION

    • I really sympathize with you but I’m afraid the issues you have mentioned are usually because of HR and not the company perse. If you do due diligence you will find that 8/10 cases of bad conditions of service for workers are instigated by local HR personnel and not the company itself. In some cases you would find the company may want to improve certain things for workers but usually HR people shoot down intentions giving their own warped reasons why the company should not do so. I have personally experienced it several times and I have heard several friends who have experienced it as well. So before you accuse the foreigners of offering bad conditions of service to workers, try to check if HR is not behind it. I’m not saying foreigners are always in innocent in this issue but my experience has taught me that more than 80% of the time it is the local Zambians who are responsible for the bad working conditions for most employees not necessarily the foreigners.

  2. THE PROBLEM WITH US ZAMBIANS IS THAT WE HATE BEING TOLD THE TRUTH ESPECIALLY WHEN ITS COMING FROM A PERSON WE PERCEIVE TO BE OUR ENEMY.

    THIS IS AN ACCURATE CHECK BY MILES AND WHAT HE HAS SAID ISNT SUPPOSED TO BE TAKEN FOR GRANTED.

    HE MIGHT BE IN THE OPPOSITION BUT WHAT HE HAS SAID IS TRUE AND MOST OF US KNOW IT.

    HH SHOULD HAVE ATLEAST ENGAGED BARRICK INSTEAD UNLIKE FIRST QUANTUM MINERALS.IN AS MUCH AS WE KNOW THAT ALL THESE MINES ARE ALL ABOUT EXPLOITING AFRICA ESPECIALLY ZAMBIA BUT BARRICK PAYS WELL AND MOST OF ITS EMPLOYEES REAP WHAT THEY SOW.

    LETS WAIT AND SEE BUT OTHERWISE THIS COMPANY THAT HH HAS OPTED FOR WILL AFFECT HIS VOTE IN 2026

  3. So now Miles “ignorant” Sampa is an accounting expert.
    Where was his financial acumen when he was a smal time leader in Lusaka, in fact did he not go begging to ECL to admit him into PF so he could be part of the thieves. This man is a baffoon and looking for attention, Sampa, join the other idiot called Sean Tembo, together you will be a great success….NOT

  4. If Zambians do not have money to invest in Zambian mines, do not think a foreigner will bring in their money at all your terms. Even getting financing from foreign banks directly will not be at Zambia’s own terms. Zambian need to go out into the world, make money and bring it back to Zambia, invest in sectors we want to own

  5. Miles Sampa you will be shocked when you see progress my dear , this is new dawn govt unlike the dununa reverse that you belonged to.

  6. What honourable Miles Samba is articulating is the truth. Only a praise singer cant get a sense out of it. Zambia wake up as u are always behind time. We have highly educated chaps but cant help our government in giving advice. Shameful on praise singers and shame on FQM .

  7. I’m failing to understand why some people are against the announced $1.3B investment by FQM. I need someone to explain to me how this is bad for our country when actually it is going to create employment for our people and by extension reduce poverty for the familes and communities involved. The claim that the money will not actually come Zambia but used to purchase equipment outside the country is so laughable that I wonder if some people really understand what is important. In the first we don’t manufacturer any mining equipment and I don’t know how the equipment would be bought within the country. Do they want FQM to bring cash and place it in the Zambian banks and leave it there for them see the so called “benefit”? And of what benefit will this be to the company and the country if that money is kept in the bank doing nothing instead of investing it by purchasing equipment which can be used rump up production and grow the money which turn benefit the country through sustainable tax earnings? Why are some Zambians so myopic in their thinking?

    • I really don’t understand what some Zambians want. On one hand they are crying that citizens needs jobs but when a company like FQM decides to invest money to create more jobs the same people start complaining that the country has been sold out to foreigners. Are we really serious as Zambians? We should be mindful that there are many countries competing for the same investment we are vilifying but instead of concentrating on formulating ways of drawing maximum benefits from such intentions for investment we are busy talking against them. What a shame.

  8. I am sure the new dawn government will not allow any investor to put butter on Zambian interests. Miles and his PF allowed investors to put butter on Zambian interests while taking bribes for the personal benefits of a few PF leaders. The new dawn government should establish solid investment monitoring tools to ensure that investments pledged by local and foreign investors lead to maximum benefits to the country. This is not the time to start vilifying pledged and potential foreign investors in the mining and other sectors.

  9. WE WILL NEVER DEVELOP AS A COUNTRY WITH A LOT OF UNEDUCATED CHAPS LIKE YOU. ONE QUESTIONS HOW MILES CAN NOW TALK ABOUT ACCOUNTING ISSUES WHEN HE IS A VERY LEARNED PERSON WHO WAS A DIRECTOR ( NOT A MANAGER) IN A BANK. HE IS AN ECONOMIST. THE OTHER CHAP SAYS HE IS FAILING TO UNDERSTAND HOW THE ANNOUNCED $1.3B WONT BENEFIT THE COUNTRY SOON AFTER READING THE REASONS ADVANCED IN MILE’S ARTICLE. SHAME ON US AFRICANS. LORD WHY!

    • Some of people you really surprise me and I usually wonder how you think. So just because Miles was a manager at finance bank or because he is an economist we should not rebuttal his opinion if it does not make sense? Do you know the qualifications and economic/social standing of the people commenting on Miles’s post for you to judge that Miles is more knowledgeable than them? Is it not the same Miles who highly celebrated when they got the first $750m Euro bond and when he was asked to give the benefits we would get from the money as a country he asked people to Google it? Just give one good enough reason why the announced investment by FQM is bad for the country. Don’t talk about importation of equipment because that does not hold water. If that’s the case that you are against importation of equipment you might as stop consuming of the things you use including your devices you are using type comments here because it is all imported. On the other hand I can give several reasons why it is good and one of them is that it will create employment for my fellow Zambians among other benefits.

  10. For me, why did you enact laws and polices that allowed this to happen when you were in government? The backlog on VAT refund were accumulated during your tenure. Why did you allow this to happen? Its all about rules of the game that you set up under pathetic Liars (PF)

  11. It doesn’t really help the country if all we do is criticize the government for it’s efforts to improve the economy. Let us try to offer solutions. What the mines need right now is a shift in policy. Put in policies that will address issues like, ownership, living conditions of workers, social responsibilities, beneficiation and all that is lacking at the moment.

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