DOW JONES NEWSWIRES
Management of Congo's $2-billion Tenke Fungurume copper/cobalt project in Katanga is embroiled in a spat with provincial authorities over payment of royalties and taxes, officials said Thursday.
Government officials, last week, provincial law makers voted to compel management to start paying part of the taxes and royalties to provincial authorities, a move that has since been rejected by management. Tenke Fungurume is owned by U.S.-based Freeport McMoRan Copper & Gold Inc. (FCX) and started output in March.
Margaret Rashidi Kabamba, the spokeswoman for Tenke Fungurume said in a statement Thursday that management would continue to pay taxes only to the central government in Kinshasa which is supposed to remit 40% of the revues to the province.
"We are quite convinced that the central government and the provincial government will find a compromise. But we are cooperating with both. The laws say that we must pay 100% to the central government. We encourage the provincial government to [enter into] dialogue with the central government to reach a compromise." she said.
Kabamba said that between October 2006 and April 2009, the company paid up to $106 million in taxes to the central government.
Early this week, provincial authorities sought to retain 0.8% of the royalties paid by the project but this was rejected by management. Katanga Governor Moisi Katumbi traveled to Kinshasa Wednesday and is expected to hold talks with Congolese Prime Minister Adolphe Muzito on the issue.
Congo's central government has in past clashed with the Copper-rich Katanga province over minerals revenues. Copper output from Katanga is expected to hit 400,000 metric tons by 2012.
-By Nicholas Bariyo, contributing to Dow Jones Newswires; +256 75 262 4615; bariyonic@yahoo.co.uk
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1 comment:
I think that it time to look at this story closely first of all I m taking a stand on this matter because I’ m a Congolese citizen, not only that I’m also originally from fungurume;
I believe that have all right to talk about this situation and give my position .
It not time to keep quiet and watch form far the tragic situations that are going on the land of our ancestor and of our future generations.
I really don’t know the reality of that dilemma between the central government , the local government Tenke F and other mining Companies in Katanga province .
But what I have to say is that our government is really deceiving us time to time , I don’t know if a matter of respecting the application of the law in place between the national and the local government or Luke of good negotiators or it just the same games that we always saw.
After promulgating a constitution I think the application need to be follow or after concluding a contract with foreign investments company , signatures on the contract I hope that respecting it is I manner of good business culture .
But what we are seeing here it just a big game , the local government is forced to put in place new law just because the central government does not respect the law in place and now companies need to be in between that matter. I think it time for the politician to learn to know how it work in civilized contract or business deals.I 'm sorry to say that but that the truth and again soddenly the central government come with orther stories that :” we need to review these contract because we don’t see Clair our country is not getting what it deserved “.Please we need to change that attitude, it because of these behaviors trs companies.
Now we can understand why the Est of Congo is always a red zone because they people don’t want to non senses .
And again GCM the Stat mining company is a chareolder of many miming companies in Katanga but ;what is GCM is getting out of these deals or joint ventures the workers in the stat owned company are not being paid their salaries for many months and the province is getting almost nothing on these deals .In this problem we need to leave alone foreigners Companies and settle our own issues.
Fungurume still a big village what is the government doing concretely to change the life of the people there.
As a Congolese and katangais form Fugurume originally, I have the obligation to tell to both central and local Gov that they need to be responsible and take the right approach on this matter and think wisely.
because the only thing that our people are getting in this business it just the jobs that the foreign companies are giving to them and the salaries.
That why we do not want that, ministers or deputies sitting in lumbubashi or Kinshasa and enjoying live , receiving good salaries very month and some of them are getting commissions in different deals and contract; to come now with this story of chatting down or suspending contracts that, just the same government signed or trying to put investments in situations of incertitude.
We are really giving them a big Warning. The time of game it passed. They have to consider the reality on the ground and pay attention to all the parties involve in this problem without forgetting to consult the civil society of the province and especially of th people living in those mining areas. We hope that the management of foreigners Companies will be patient and understand that we are dealing here with a country the going true a process and the people Katanga need their support for the development of the country in a mutual respect and collaboration.
LEON KAFITWE
RSA/CPT
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