FQM Dominates Zambia’s Extractive Sector Contributions
First Quantum Minerals (FQM) emerged as the primary revenue contributor to the Zambian government from the extractive sector in 2022, according to the latest Zambia Extractive Industry Transparency Initiative (ZEITI) report.
The independently audited report unveiled that FQM, a key player in the mining industry, significantly contributed over K25 billion in taxes, royalties, and various payments.
The report, presented during the launch in Solwezi, North-Western Province, underscored FQM’s pivotal role in supporting the Zambian economy.
The company made a substantial commitment of over a billion dollars for additional capital investment, demonstrating a commitment to completing the Enterprise nickel mine and progressing the S3 expansion at Kansanshi.
An FQM representative emphasized the positive impact of the government’s decision to reform the mining tax regime in 2022. This reform created favorable policy conditions, securing essential funding for the much-needed investment.
Without this investment, not only would the Nickel Enterprise Mine remain incomplete, but Kansanshi’s mine life would have also faced premature closure.
The report also highlighted FQM’s commitment beyond financial contributions, with an additional expenditure of K200 million in 2022 on various community-based Corporate Social Investment projects. These initiatives focus on areas such as livelihoods, education, health, and infrastructure.
While projections indicate a potential decrease in overall tax payments for 2023 due to lower copper prices and increased costs, the long-term outlook remains robust.
FQM’s ongoing investments in projects like S3 and Enterprise signal a promising future for the North-western Province.
