Africa-Press – Zambia. FORMER higher education minister Brian Mushimba says if Zambia can’t negotiate better like Panama, “let’s agree to leave the copper in the ground for the future generations to come and negotiate”.
“If at this juncture, with the demand for copper and copper prices soaring thru the roof over the next 30 to 40yrs we can’t negotiate like Panama, let’s agree to leave the copper in the ground for the future generations to come and negotiate. Tafyakabole (it will not rot), tweeted Dr Mushimba, an engineer, on Tuesday. “Let’s just continue asking for hand-outs, IMF bailouts, donor funds, aid, etc.”
Vancouver-based First Quantum and the Ministry of Commerce and Industries of Panama began negotiations to renew the contract for Cobre Panamá in September 2021. An agreement was reached in January when the company agreed to up its royalty payments for the copper mine to $375 million a year. As part of that deal, the miner also accepted to give the government between 12 per cent and 16 per cent of its gross profit, which would replace the previous two per cent revenue royalty.
First Quantum agreed as well to start paying 25 per cent corporation tax, from which it was previously exempted until its investments at the mine were recovered. Multiple drafts have been exchanged throughout the year, including the latest version dated September 7, 2022.
The new contract also includes environmental protection measures, a closure plan and labour provisions based on current legislation. It also specifies the state must receive income greater than $400 million, considering current copper prices.
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