ASSESSMENT
Zambia hits First Quantum with $7.9bn tax bill over mines
Toronto/Lusaka — Zambia has handed First Quantum Minerals a $7.9bn tax bill and says it is planning an audit of other mining companies going back six years. First Quantum received a letter from the Zambia Revenue Authority (ZRA) dated Monday "noting an assessment for import duties, penalties and interest on consumables and spare parts", the Canadian miner said on Tuesday. Shares in the company, which derives 84% of its revenue from Zambia, fell the most in almost two years. "The company unequivocally refutes this assessment, which does not appear to have any discernible basis of calculation and will continue working with the ZRA, as it normally does, to resolve the issue," it said. First Quantum is not the first miner to be hit with a hefty tax bill for operations in Africa. In 2017, Tanzania sent Acacia Mining a demand for payment equal to almost two centuries’ worth of the gold miner’s revenue. And the Democratic Republic of Congo is moving ahead with a new mining code that would ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.