Government Denies Reports Of Selling Kansanshi Mining Shares And Calls For Citizens To Remain Vigilant And Ignore Misinformation

Yesterday, the New Dawn government, through the Ministry of Information and Media, reiterated that it has not sold its shares in the Kansanshi mine and will continue to play a role in its operations.

The government announced that it will continue to hold shares as well as be represented on the board of the mine to ensure visibility and transparency over its operations. 

The announcement came as concerns grew over misinformation surrounding an agreement between ZCCM Investment Holdings (ZCCM-IH) and First Quantum Minerals (FQM), who currently run the mine.

In the statement, Chushi Kasanda, Minister of Information and Media and Chief Government Spokesperson explained that the deal, which was finalised on 1st December this year, will see ZCCM-IH obtain a 3.1% royalty payment from Kansanshi’s revenue.

This royalty is estimated to bring in US $50-70 million per annum, depending on the value of the minerals.

The minister further outlined that the arrangement would be valid for the entire lifetime of the mine and replaces the less profitable dividend-based model.

The changes in the arrangement will ensure that revenue from the mine will be more consistent and predictable.

Additionally, the new arrangement will ensure that funds are paid out as long as the mine is in operation, unlike the dividend-based model where dividends would only be paid if the mine made a profit.

Mr Kasanda further explained that revenue from the mine would be used to finance Zambia’s ambitious investment goals.

He outlined that this consistent stream of revenue will enable ZCCM-IH to pursue productive investments which will create employment opportunities and promote economic growth in Zambia.

Finally, the statement called for members of the public to remain vigilant and ignore misinformation claiming that ZCCM-IH will no longer play a role in the mine.