Zambia Prevents Glencore from Avoiding Taxation*
Criminality pays when one plays the big boys game as Marc Rich, the guy Clinton when president pardoned after being on the FBI’s Top10 for tax evasion…
Glencore is Rich’s company. He’s American, the company is Swiss, and it’s listed on the London Stock Exchange.
Rich is the kind of guy who gets 10-year old children to climb down hand dug shafts without protection or gear to get copper, and cobalt in Tilwezembe Mine in the Democratic Republic of the Congo. From that exploit Rich carted out truck load of minerals that made U.S$186 billion in revenue in 2011 for Glencore. 2011 is when Glencore went public.
Now Glencore is one of the world’s largest commodities giant corporations that avoids taxation – a Rothschild trait. Rich didn’t get away so easily when President Morales of Bolivia nationalized Colquiri tin mines.
Michael Ross, author of The Oil Curse and a professor at the University of California, Los Angeles.
“And in a number of countries where Glencore operates, doing business means putting money into the pockets of repressive governments and corrupt rulers. In some of those places … it’s hard to draw a line between what’s legally corrupt and what’s not.”
Rich’s involvement in the metals market cost Bolivia millions in the 1980’s, and with the illegal sale of 400 metric tons of tin to a company in Thailand cost Bolivia U.S$4mn.
Former MOSSAD chief Shabtai Shavit said Rich helped with the intelligence agency’s work in Yemen and Sudan in the Eighties, when Israel was evacuating Jews from those countries.
Glencore, went on trial in Geneva for human rights violations committed around the world.
By Cecilia Jamasmie
World’s third-largest miner by market value Glencore (LON:GLEN) has idled operations at its Zambian zinc mine as the government continues to withhold at least $200 million in tax refunds owed to the firm.
The move comes barely a day after the miner announced it was halting over $800 millions worth of copper projects in the country for the same reasons.
In a statement the miner said it was placing Sable Zinc Kabwe under “care and maintenance” in response “to the current local economic environment in Zambia, as well as the cash flow restrictions caused by the withholding of around $12 million in VAT refunds.”
Glencore added that 169 jobs at the mine will go as a consequence of the measure. It also said the mine was curbing “all expansion capital projects.”
“Sable is working with affected employees to identify opportunities at other group companies in Zambia as well as with other operations in the Kabwe area,” it said.
The African nation, which last year lost its position as Africa’s top copper miner to Congo for the first time since 1998, began enforcing the rule last year in order to curb tax avoidance.
In August finance minister Alexander Chikwanda announced the government had decided to relax the rule because it proved very hard to implement, mainly because it involved documentation from importers outside the country’s jurisdiction.
However the government is still withholding about $600 million in VAT refunds owed to mining firms, including Barrick Gold (TSX, NYSE:ABX), Vale (NYSE:VALE), and Vedanta Resources (LON:VED).
According to sources quoted by Bloomberg, Zambia’s government is mulling a 6% increase in royalty rates charged on sales and elimination of all corporate tax for mining companies.
The source said the new scheme would be simpler for the government to administer, as well as more transparent than corporate income taxes. Zambia doubled mineral royalties to the current level in 2011.
Glencore becomes the latest company to freeze investments in the country, following a similar move by First Quantum Minerals (TSX:FM).
The Canadian company, which operates the Kansanshi Copper Mine, Zambia’s largest mine by output, said in June it had put investments worth $1.5 billion on hold over withheld refunds.