SOLWEZI, ZAMBIA – First Quantum Minerals Chief Executive, Tristan Pascall, has been on the ground at Kansanshi to personally inspect the progress the company is making with its S3 expansion project. Of a total investment commitment of US$1.25 billion, the majority of this is being spent this year to ensure the entire project is completed by mid-2025.

The S3 expansion entails an expansion of the mine pit and the mining fleet that services it, as well as the construction of a new processing plant, and a major expansion of the Kansanshi smelter. The result will be to extend Kansanshi’s mine life as a world class asset into the 2040s, increase copper production to more than 200,000 tonnes a year while continuing to drive economic development and jobs in Zambia.

To ensure continuation of the S3 expansion in the face of disruption to its Cobre Panama mine in Panama, First Quantum has recently raised US$3.3 billion as part of a comprehensive refinancing package and a copper pre-payment arrangement. The company has also extended its debt facilities through to mid-2027, providing the pathway to deliver on its commitment to Zambia with the S3 expansion.  

Commenting after his site inspection, Mr Tristan Pascall, said he was pleased to see the level of progress on the ground at Kansanshi.

“It’s great to be at Kansanshi, and to see that the S3 development work is progressing on the ground according to plan. Kansanshi – and Zambia, in general – has been the mainstay of our mining activity for the last twenty years, and will be just as important to us for the next twenty. We’ve had to adapt ourselves to unforeseen circumstances over the last few months, but we’ve met challenges before, always finding a way through and coming out stronger. Completing the S3 expansion on schedule is a priority for us, and the actions we have taken recently puts us in a strong position to do just that. I look forward to my next visit here, to see this project through to its completion.”

Source: Langmead & Baker

LUSAKA, ZAMBIA – Zambia’s largest taxpayer First Quantum Minerals (FQM), has pledged its support for the Bank of Zambia’s Export Proceeds Tracking Framework directives, which aim to ensure revenue from exports of goods and services, and the use of these funds, can be tracked through local Zambian bank accounts. 

The directives, which came into effect on January 1 this year, require exporters to match export records to funds flowing through Zambian bank accounts in order to give the Bank of Zambia greater visibility of both the source of the funds received and the use of these funds.  

“The central bank’s approach will enable greater transparency on the level of proceeds received in relation to exports as well as allowing any mismatches to be investigated. In addition, with exports being predominately in US dollars this also provides the central bank with the information to more effectively track these dollar flows and the impact this may have on the kwacha, which is key for the economy,” said FQM Country Manager Dr Godwin Beene. 

The company pledged its support and compliance with the new requirements and emphasised that it had for many years ensured export proceeds flowed through its Zambian bank accounts and had been reporting on this to government under Rule 18 (Proof of Exports) of the Zambia Revenue Authority’s VAT General Rules, which require exporters to provide documentary evidence of export proceeds having been deposited in a local bank. 

Tax payments from the mining sector as a whole rose by 11 percent to K43.3 billion in 2022, according to the recent independently audited report from the Zambia Extractive Industries Transparency Initiative (ZEITI). FQM’s Kansanshi Mining subsidiary was the largest contributor, paying K15 billion in tax, while FQM Trident made contributions of K8.6 billion. 

Source: Langmead & Baker