Our history in Zambia

We acquired our shareholding in Mopani Copper Mines plc through a competitive tender as part of a general privatisation process, supported by the World Bank, of Zambia’s copper mining assets in 2000.

Following years of under-investment prior to privatisation, Mopani was in a difficult financial and physical condition. The corporate shareholders have committed over $4 billion in investment since privatisation to redevelop and expand Mopani’s operations.

Today, Mopani has over 4,500 employees working at its operations. We estimate that each employee has an average of eight dependents. Mining is the highest paying sector in Zambia. The salary of the most junior employees is $680 per month (K4,300) compared to the national minimum wage of $180 per month (K1,132). Mopani believes it is the second highest payer of its most junior employees amongst the mining companies in Zambia.

In 2014, Mopani made payments totalling $1.77 billion to contractor and supplier companies. Of this, nearly 60% was spent in Zambia.

Flawed draft report released

In February 2011 a draft provisional report prepared by advisers to the Zambia Revenue Authority was unofficially circulated in Zambia. The draft provisional report contained fundamental factual errors and both Mopani and Glencore have publicly refuted its content on numerous occasions.

In response to a request from Glencore to review the draft provisional report, Deloitte described “fundamental flaws in terms of methodology and approach applied” and reiterated that “for each of the years subject to audit, Mopani’s statutory financial statements were audited by Deloitte Zambia and unqualified audit opinions were issued”. Deloitte’s full letter is available online.

Mopani also undertakes production hedging on the London Metal Exchange, a standard practice within the mining industry. The results of these activities were not taken into account by the authors during their desktop review, making their methodology inaccurate.

Zambian Revenue Authority is satisfied

Mopani has engaged in a detailed and constructive dialogue with the Zambia Revenue Authority on these matters. The Zambia Revenue Authority has completed its audits of all the years in question and came out with no findings or complaints.

Mopani has paid over $1 billion in taxes, royalties and other dues since privatisation.

We support transparency in taxes and other payments

Taxes, royalties and other dues to Government as declared include Pay As You Earn (PAYE), Mineral Royalties and Import Customs & Excise Duty. Mopani also pays Import VAT & Reverse VAT as well as property rates on a monthly basis.

Mopani was recently awarded the best reporting company for EITI in Zambia for demonstrating consistency and strict adherence to the EITI reporting requirements.