LUSAKA, March 21 (Xinhua) -- Canada's mining giant First Quantum Minerals Limited on Wednesday refuted claims by Zambia's revenue agency regarding underpayments on customs duties.
On Tuesday, the Zambia Revenue Authority (ZRA) said investigations had revealed that the mining firm was engaged in mis-classifying consumables and spare parts at importation for the last five years amounting to about 7.7 billion U.S. dollars.
Topys Sikalinda, the revenue agency's spokesperson, said the items were declared as mining machinery which attract customs duty at zero percent when in fact not.
The revenue agency has since announced that it will from March 26 commence audit of all mining firms in the country.
But First Quantum Minerals Limited president Clive Newall confirmed that the firm was in possession of a letter from the revenue agency noting an assessment of import duties, penalties and interest on consumables and spare parts.
He, however, said the company has unequivocally refuted the assessment which does not appear to have any discernable basis of calculation, according to a statement.
The company will continue to work with the revenue agency to resolve the issue, it added.
