Tuesday, March 20, 2018

Massive chit hits fan for First Quantum Minerals Ltd. - FM.t

First Quantum Minerals Ltd. - FM.t is an established mining and metals company operating six mines and developing five projects worldwide.

The Company’s operations are the Kansanshi copper-gold mine, the Guelb Moghrein copper-gold mine, the Las Cruces copper mine, the Pyhäsalmi copper-zinc mine, the Ravensthorpe nickel-cobalt mine, and the Çayeli copper-zinc mine.

Copper miner First Quantum just got the massive large pee pee right where it hurts courtesy of Zambia Revenue (ZRA).

Describing it as "a Mining tax scam worth 76.5 billion Kwacha" the agency figures FM owes about $8 billion. Where that ridiculous number came from is anybody's guess at this point. The 2018 theme for ZRA is “Rewarding compliant tax payers and punishing non-compliant tax payers to the maximum”. Well that's great but now who on fukkin earth will invest a nickle in Zambia? NOBODY that's who.
The Authority plans "detailed audits on all mining companies for compliance in all applicable tax types in order to ensure all taxes due are collected."

This is a 'worst case' made far more gruesome by the fact FM relies heavily on Zambian operations. Many might suppose the government's next step is to nationalize all mining operations in the country. Seeds of doubt under a massive cloud and FM stakeholders are in trouble deep, along with every other company with investments in Zambia.