The Mine Workers Union of Zambia (MUZ) has welcomed First Quantum Minerals’ approval of $1.25 billion mine expansion in Zambia.
Speaking in an exclusive interview with the Zambian Business Times – ZBT, MUZ General Secretary George Mumba said the action gives MUZ excitement and hope that first quantum minerals FQM is here for long.
Mumba disclosed that pouring of such amount of money for expansion in Zambia is the step in the right direction as it guarantees the jobs of the members of the union.
He said the approval of $1.25 billion will also help the new dawn’s agenda to ramp up production from the current 800 000 metric tons to over three million metric tons in the next 10 years.
Mumba told ZBT that the action gives hope that if the existing operations can be expanded with such kind of injection the country can benefit as the projection is that the copper price will continue being high because of electric motors vehicles.
He added that such expansion gives a good position for the future of mining in Zambia.
According to a statement seen by ZBT, FQM said its board has approved plans for a $1.25 billion expansion of the company’s Kansanshi Copper Mine in Solwezi, a decision the company said was prompted by renewed confidence in Zambia’s investments climate.
FQM said the $1.25 billion package overall represents the largest investment in Zambia since its sentinel project was approved in 2012.
The company said it also approved a further $100 million investment in its enterprise Nickel project in Zambia, which it expects to start producing in 2023, ramping up to an annual production of 30,000 tonnes of nickel in concentrate.
The statement mentioned that FQM and the government have reached an agreement on outstanding Value Added Tax (VAT) repayments owed to it and an approach for repayment based on offsets against future mining taxes and royalties.
