FQM & Lubambe Mines now pledge to invest over $2.5b in Zambia
The Zambia Chamber of Mines (ZCM) has disclosed that Zambia’s mining sector is ready to invest in expansion projects worth more than US$2.5 billion next year in Zambia once the industry agrees on mineral royalties with the new Government.
ZCM President Dr. Godwin Beene said First Quantum Minerals Limited (FQM) was ready to invest about US$1.5 billion into new expansion projects next year while Lubambe Copper Mine is also ready to invest about US$1.0 billion in expansion projects in the country.
He said that the mining companies want the new Government to allow them to deduct mineral royalties from the tax they pay on profits and want a sliding scale tax that is levied on a pay as you earn basis.
“FQM and Lubambe are ready to invest in expansion projects in Zambia next year worth over US$2.5 billion if the industry can agree on royalties with the new Government.
“FQM will invest US$1.5 billion while Lubambe is ready to invest about US$1.0 billion in its expansion projects, this totaling more than $2.5 billion,” Dr. Beene said.
He also said other companies were ready to spend hundreds of millions of dollars in capital projects that they had held back since 2019 due to tax changes. Dr Beene said President Hakainde Hichilema had reset the tone to one of rebuilding confidence and spurring growth.
“The industry is very positive and optimistic that with this common-goal approach to the way forward, there will be more of a partnership with government than we had ever seen before,” he said.
