- Stay Connected
Socialize
We Are Not Glencore, Says Mopani
By NANCY MWAPE
MOPANI Copper Mine has distanced itself from Glencore International Plc, its mother company, which has in the past come under severe international media glare for alleged “tax irregularities”.
The company’s chairman Emmanuel Mutati said Mopani’s dealing with the Swiss company is simply at “arm’s length”.
Zambian miners walk out of a lift at Konkola Copper mine in Chililabombwe, Zambia.
Mr Mutati said: “We sell them copper and they pay us the full value, why would there be a problem? We are happy, we get the value we are looking for.”
Mr Mutati said this in a special interview with the Zambia Daily Mail.
In February 2011, a Grant Thornton and Econ Prory audit report sanctioned by the government revealed alleged “irregularities” and “inconsistencies” in production and revenue figures that Mopani submits to Zambia Revenue Authority (ZRA) for tax administration, most of which is hinged on its links to Glencore.
The report stated that the taxes being paid by mining firms in the country were not consistent with production volumes and the revenues from copper sales.
Mr Mutati said Mopani’s relationship with Glencore is at “arm’s length,” adding that copper is sold to the parent company on a strictly business deal with strict reference to the London Metal Exchange prevailing price.
“Ten days later, the money is paid to in a Standard Chartered Bank, Kitwe, in dollar by Glencore. We don’t have a foreign account at all,” he said.
Mr Mutati said there is an independent check by ZRA of the quantity sold and the revenue expected.
He said ZRA makes the accumulation and is able to tell the amount of revenue expected from Mopani at the end of the month.
He said the revenue authority can also counter-check the price by dividing the weight into value and check the London
Metal Exchange for the average price of copper for that particular month.
“ZRA are on site in Mufulira all the time, no truck can leave the plant without the certificate,” he said.
In the past, Finance Deputy Minister Miles Sampa has placed multi-national companies on the spot for overstating their costs and understating their profits, a process that has bled Zambia for up to US$2 billion annually, according to reports.
Mr Sampa has never specified any company.
Posted by Editor
on April 11, 2013. Filed under LATEST NEWS.
You can follow any responses to this entry through the RSS 2.0.
You can leave a response or trackback to this entry
immodium
April 11, 2013 at 10:32 am
Mopani sell copper at a low price to a sister company. It declares tax on this low amount. The sister company sells the copper and makes huge profit. That is why the Black slave is talking about “arms length” and “auditable” crap. Zambia should be earning 10 or more times the amount in tax from Glencoe Mopani
The Mafia
April 11, 2013 at 12:36 pm
Who is Mopani trying to fool on this issue, unless people do not read and the govt accepts these investors without having to check their background. It is not a life or a myth that Mopani is Glencore. It is just the statement that may misleas soneone, but the actual truth is Mopani is a company owned by Carlisa Investments Corporation (a joint venture company comprising Glencore International AG (73.1%) and First Quantum Minerals Ltd (16.9%)) and ZCCM-IH (10%).[1] Minority shareholders are spread throughout the world in various locations. These are criminals with powerful connections around the world!
bakamba
April 11, 2013 at 12:50 pm
Kababe
PWELE
April 11, 2013 at 5:09 pm
ba Mopani, there’s wisdom in keeping quite. we’re not babies or fools who cant see things beyond their noses. the PF govt has come up with a police thru the central bank to see to it that invoices fo copper pass thru cb. u will be caught if ever you under declare the value for OUR copper.
Kwisa
April 11, 2013 at 5:14 pm
Mopani is Glencore, Period. Thanx ba mafia
Umwina Zed
April 11, 2013 at 8:48 pm
We are not kids. Why do you sell to Glencore? And Why aren’t you putting money into the mining community you are reaping from like the previous mining companies did (even before ZCCM)?
tax man
April 12, 2013 at 8:29 am
Tax the company based on the value according to the LME on the date of export contract. No unprocessed ore to leave zed.
Half Petticoat
April 12, 2013 at 8:33 am
Alenya fye ifykunya. Manuele Mututila must have a little moral to see the poverty he has helped create in Mufulira and the wealth he has transferred to Switzerland.
Janet c
April 12, 2013 at 9:08 am
BIG shame on you Ba Mutati – how can you defend a dubious company and yet your fellow zambians in Mufulira are languishing in poverty. Africans are so dull – they allow themselves to be used as muppets by these big corporations – Ba Mutati I hope you sleep peacefully at night knowing that you are contributing to the impoverishment and reduced life expectancy of miners in Zambia
chanda chimbwi III
April 12, 2013 at 10:27 am
Once beaten always shy,Those are mafias
shimaini
April 12, 2013 at 12:49 pm
Janet c, am impressed by your contribution. This is the way a matured woman should contribute. Bravo
Kabende Sabuka
April 15, 2013 at 2:33 pm
Mutati failed to embrace the social responsibility era apart from helping his local church. Now Dan Carol is the man. Look at Nkana Stadium. Diggers have the most sofisticated gym on the continent. He is now refurbishing Shinde stadium. Uushitasha mwana wa nkumba. Even if they evade tax like most bussiness entities do,at least they are socialy responsible.
wabo
April 23, 2013 at 1:55 pm
mopani am not suprised,a company with managers with little or no education to support their positions shame on you
Kofya
April 26, 2013 at 8:43 pm
BUSHE ABO BA MUTATI,BALITALA ABATAMBAKO DOCUMENTARY “STEALING AFRICA?” BAKEPUSHE BA EDITH NAWAKWI.