Column: Trump 2.0 won’t reverse Biden’s critical minerals push
Donald Trump has described the Inflation Reduction Act (IRA) as a "green scam" and vowed to repeal it after he returns to the White House in January.
The findings of a two-year investigation into possible tax avoidance by a Zambian copper operation of Swiss commodities giant Glencore (LON:GLEN) will not be made public by The European Investment Bank.
In 2005, the EIB – which is owned by EU member states and in 2013 provided some $75 billion in loans – loaned $50 million to Mopani Copper Mines, the the southern African nation’s largest copper mine for the overhaul of a copper smelter to reduce sulphur dioxide emissions.
In 2011, a leaked audit report suggested that Mopani, 73%-owned by Glencore, avoided paying tens of millions of dollars in Zambian taxes. The EIB decided to stop any further lending to the mine and launched an investigation.
Subsequently a group of NGO’s led by human rights campaigner Christian Aid filed a complaint. This is Money reports the findings of the report will be kept secret, despite a recommendation by the bank’s own internal complaints team that details of the investigation be made public:
‘This is a scandal,’ said [Christian Aid’s] economic justice spokesman Toby Quantrill.
‘The Bank is covering up a report on a matter of huge public interest both in Europe and in Africa: did a Glencore-controlled company evade tax or not?
‘It is time that they dragged the Bank into the light, so people can find out more about the projects to which it lends – including whether they pay their taxes.’ In a response to Christian Aid, the EIB’s complaints team ‘expresses its preference to disclose a redacted version of the Fraud Investigations Report’.
Glencore says the 2011 draft audit prepared for the Zambia Revenue authority that sparked the investigation was “fundamentally flawed” and the company has publicly refuted its conclusions on numerous occasions.
In a press statement the EIB says Glencore informed the bank that the Zambian Revenue Authorities had completed an audit and that all outstanding issues were satisfactorily resolved. In addition the EIB says it has not been able to obtain further details on this matter from Zambian authorities, Mopani or Glencore.
Glencore, the world’s fourth largest mining company, bought the Mopani from the Zambian government in 2000 and has since committed $2 billion to develop the complex. Canada’s First Quantum Minerals holds 16.9% and state investment company ZCCM owns 10%.
Mopani operates four underground mines, a concentrator and a cobalt plant in the town of Kitwe and an underground mine, concentrator, smelter and refinery in the town of Mufulira. Mining in the area close to the DRC border dates back to the 1930s.
The refurbishment of the Mufulira plant, blamed for sulphur dioxide-related respiratory diseases and environmental damage by locals, has now been completed. The plant first began production in 1937.
Mopani is also nearing completion of a $322 million underground expansion at Kitwe’s Nkana mine.
Mopani employs 16,300 people in Zambia and its stated production capacity is 250,000 tonnes of copper and 2,400 tonnes of cobalt.
According to the 2013 Africa Progress Report while Zambia’s minerals industry exported a total of $10 billion in 2011, Zambia itself collected only $240 million in tax mining revenue, which amounts to just 2.4% of the value of mineral exports, reports Global Journalist.
Image of Nkana open pit and headgear in Kitwe by Per Arne Wilson
3 Comments
Gary
One would presume that by not divulging the findings then by default you are guilty or am I just cynical?
Reasonata
It is all nonsense. First that audit report by grant thorton was dismissed by all parties including Zambian government as inadequate.
It is a villagers perception to look at the total revenue and work out what the taxes should have been.Mining companies took over dilapidated mines .And to attract their investments most governments offer 100% recovery of capital investments which is taken out of profits before tax is levied.
These organisations called christian aids /action justice/tax Justice are nothing but a front to propound outdated leftist views.In the end it is the zambian people who suffer due to lack of investment or in this case loans denied to arrest much needed pollution control .SHAME
deykenya
It is an interesting exposure including the comments, and to leverage the debate it is easier to see the problem in a three way dimension parallel, that will not bring resolve but further splits, the idea here is to find a lasting solution not a derivative to survive the time and hopefully the letter recently written to resolve such an issue in a different scene but same show may help all to contemplate to consider the reality of this exposure to better our regards to business and lead ethics and morals just for profit:
Dear Sir,
Saw the offer
and docs it may work but the discount distribution will be rejected, as you
have noted each time we have had a buyer we were rejected due fact the share of
the buyer agents all bear the cost of sellers discharge, whilst the sellers
retain their closed.
To explain
why do such rejection takes place?:
That by
international policing on money laundering and corruption the following
distribution will become a stigma of risk be it by opinion or calculated
assumptions! By its very nature that principles need agents and agents need
facilitators, to dilute such discourse to distance from direct association to a
conspiracy for receipts inline in Public Corporations, just as in Private
Enterprise where it is considered insider act when the product /or shares are
for placement and consumption in the Public Arena referred as good trading
and/or governing conduct and practice, just as BLCO and Mining is a raw product in the energy and Industrial sector and produced by a National Corporation passing through Private Processing and Refining to be consumed by service to the public sector as consumers, yet in its origin belong to the wealth of the god given land of the Nation, and thereby belongs to the citizens by first charge righteously, The Government second charge as Trustee and thereafter commerce all history has reflected this as the primary reason for rule and law!
1: To Buyer’s:
an implication for allowing a bribe to receive the excess unsolicited
earnings as an trustee in particular Public Corporation as an appointed officer
to act in the interested of the Company vested to be a trust to serve when
receiving a salary from the investments/payments made by the consumer in the
private sector and voter in the Public sector.
Just as
Producers and manufacturers appoint agents, distributors and so forth to share
and generate income distribution and by its reverse mirror effect to tether it
as a link of anomaly if the link is broken to become a default of loyalty as
specified in the non-circumvention non-disclosure clause, in the civil and/or
criminal virtue effectively.
2: To Banker:
As receiver of this illicit deposit as manager of such income by their service
monopoly holding as trader of currency, just as the criminal charge of acting
as a receiver and passing on, here it is regarded money laundering in goods and as in products is handling of stolen goods.
3: The catch
word here is the act of third party induced receipts, just as third party
insurance that protects the principles from third part loss. In Public service
called scapegoat or in Private called crime, by such reduce the charge to
become lessor or most as an accessory! These positions have been tried and
tested in cases of freedom fighters and revolutionary aspects during colonial
times.
It is therefore crucial if we the Facilitator’s are to remain under such umbrella of distribution to also protect exposure and risk beyond any trial and tribulation to befall our privileged earnings by any premeditated outcome to become implicated or even disrepute by being in association by the desire of an income in it individual status and standing.
The service should deserve as is recognized by its intellectual in virtue and accepted for example for reading editing and calculating the risks that facilitator’s may or may not endure as this mail performs as, itself have a value of foresight and safety clause to the composite physical and mental health after effects, if and when any such investigative trauma are addressed within the period and tenure of the non-circumvention and non-disclosure clause effectively is endured within the protocols bound by the laws of the lands of each part commission earners.
It is by the nature of the above mentioned risks be it speculation or become instituted provision and adopted by the Regulators of World Trade Organization or World Bank and/or Governments will become! It is thereby necessary for both the end seller’s and end buyer’s should by this precaution accept a special concession to appoint and manage such talent to be retained as coordinator and thereby entitled to a defined fee that shall include costs and expenses for attested legal and financial management fees.
The contract
to service and manage the link between the principles, Mandates and
Facilitator’s incomes protected and shielded from any such exposure and
constituted to be rightful by law proscribed within the parameters of each part
played and in accordance to fair share for fair work both physical,
intellectual cost expenses and time invested. So that disputes are contained to
the bear minimum and to the comfort of all.
The inherent
value of such considerations make the SPA transparent and meaningful,
protective and doable without any fear of retribution.
This letter
has been produced and provided in good faith and for the addressed and only for
their valued to consider its value for application to their commercial
privilege subject to an agreement on acceptance and for a considered value for
the intellectual property and remains the author hereunder signed.