African Resources Watch (AFREWATCH), a human rights organization promoting transparency in the exploitation of natural resources in Africa is concerned by Glencore’s decision to suspend its mineral production for 18 months at KCC in DRC and Mopani in Zambia due operational costs and internal restructuring. This suspension of mining production would deprive
the two countries of millions of dollars and may cause thousands of job losses. Through its subsidiary companies in DRC and Zambia, Glencore produces around 259,000 tons of copper for a USD 5 billion investment of which USD 2.8 billion invested at KCC in DRC and 2 billion ventured at Mopani in Zambia. KCC has created 10000 jobs of which 4500 are direct and 5500 are indirect; Mopani employs 20000 local and expatriates workers of which 9000 are employed directly and 11000 indirectly.
In addition, in 2013 KCC and Mopani paid respectively USD 298.720.473 to the DRC and 106.485.974 of taxes to Zambia.
The DRC and Zambia’s EITI reports reveal that during the last 9 years, mining companies, e.g. KCC and Mopani, were reluctant to pay their income taxes, since most of them are operating within the exclusivity period through which they are recovering their respective investment costs. While only a few firms have started paying their income taxes this year, the DRC and Zambia are impatient to receive income taxes from companies that are still operating within their “exclusivity period”.