sharing in governance of extractive industries

More Zambia miners face tax issues - Reuters

Zambia's finance minister said on Thursday that audits had highlighted tax "issues" with Konkola Copper Mines (KCM), owned by London-listed Vedanta Resources (VED.L), and Canada's First Quantum Minerals (FM.TO) in addition to Glencore's (GLEN.L) subsidiary in the country.

 Situmbeko Musokotwane said earlier this month that an audit showed taxes were still owed by commodity trader Glencore's Mopani Copper Mines but the company was being given a chance to respond.

Musokotwane told Reuters on Thursday on the sidelines of a mining conference there were also issues with KCM and First Quantum.
"We audited Mopani, First Quantum and KCM. There are issues with all these companies," he said.

"If some are found liable, they have to pay. If they are clean they will go scot free," he said.

He declined to say what sums were involved.
The chief executive of Mopani Copper Mines said a leaked audit of the company was based on based on flawed methodology.

Zambia is Africa's top copper producer with projects in the pipeline expected to boost capacity to over a million tonnes per year by 2015.

But it is one of the world's poorest countries and the country's Treasury gets scant revenue from the mining sector.
The country's mines minister told Reuters on Wednesday that more mining companies would be subjected to audits.

(Reporting by Ed Stoddard and Chris Mfula, editing by David Cowell)


More at: http://uk.reuters.com/article/2011/06/16/vedanta-zambia-idUKLDE75F1...

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