By Chinoyi Chipulu
The Economic Freedom Fighters (EFF) party has called for the immediate reversal of the Kansanshi Mines agreement saying it is a disadvantageous deal.
EFF leader Kasonde Mwenda said Kansanshi Mine litigation was a deal that robbed Zambians and lines the pockets of foreign multinationals.
In a statement yesterday, Mwenda stated that for every $100 worth of copper, gold, and silver taken from country, Zambia was left with less than $2.
He stated that this was day light robbery disguised as investment.
“The rest—$98 out of every $100—flows straight overseas to First Quantum Minerals. Let that sink in. This is not a partnership. The numbers do not lie: Kansanshi Mine holds $69 billion in minerals. Full renegotiation of all major mining contracts to reflect fair royalties and profit-sharing in line with international best practice. No more settling for the lowest rates on the continent,” read the statement in part.
Mwenda stated that there was need for transparent, public audits of all mineral exports, contracts, and revenue streams to reveal how much value was leaving Zambian borders and who was benefiting.
“We demand for restitution for lost revenue: All companies that engaged in transfer mispricing or hid Zambia’s true mineral wealth must be held financially accountable. There is need for comprehensive public disclosure,” he stated.
He stated that the country did not need more secret deals hence, all mining agreements should be made accessible to every Zambian.
“As EFF, we are outraged to expose the chilling truth behind the so called “resolution” of the Kansanshi Mine litigation deal that robs Zambians and lines the pockets of foreign multinationals,” he stated. “Kansanshi Mine holds $69 billion in minerals. Zambia’s annual cut? A miserable $62 million—just 3.1% of the bounty we own by right. If we applied even our basic government royalty rate (10%), we would receive three times more—over $200 million each year.”
He stated that Zambia would be shortchanged by $3 billion over the next two decades because of this disastrous giveaway.
He wondered why the government settled for scraps like the $195 million “upfront” payment when authorities proved that First Quantum owed the country $8 billion.
Mwenda stated that this settlement was less than 3 percent of a single unpaid tax bill.
