30th Jun 2017 14:00
Report on Payments to Governments for the year ended 31 December 2016
KAZ Minerals PLC ("KAZ Minerals" or "the Group") today provides information in accordance with DTR4.3A and The Reports on Payments to Governments Regulations 2014 (the "Regulations") in respect of payments made by the Group for the year ended 31 December 2016.
Payments to Governments
The table below represents the Group's consolidated report on payments made to governments under the Regulations. The table includes all payments made in excess of £86,000 ($116,000) for activities related to the exploration, prospecting, discovery, development and extraction of minerals by project, government type and country, rounded to the nearest thousand US Dollars.
For the year ended 31 December 2016, payments to governments under the Regulations amounted to $169.7 million.
US$'000 | Corporate income tax | Mineral Extraction Tax and Royalties(1) | Withholding tax | Signature bonus | Licence fee(2) | Infrastructure and social payments(3) | Total |
KAZAKHSTAN | |||||||
Artemyevsky - License | - | 11,143 | - | 965 | - | - | 12,108 |
Irtyshsky - License | - | 6,677 | - | - | 326 | - | 7,003 |
Orlovsky - License | - | 27,368 | - | - | - | - | 27,368 |
Yubileyno-Snegirihinsky - License | - | 3,714 | - | - | 132 | - | 3,846 |
Legal entity | 29,824 | - | 351 | - | - | 4,485 | 34,660 |
Total East Region | 29,824 | 48,902 | 351 | 965 | 458 | 4,485 | 84,985 |
Aktogay project and legal entity | 8,494 | 18,809 | 515 | - | 1,051 | 600 | 29,469 |
Bozshakol project and legal entity | - | 46,359 | 208 | - | 148 | 2,153 | 48,868 |
Koksay project and legal entity | - | - | - | - | - | - | - |
Other legal entities | 461 | - | - | - | - | 195 | 656 |
38,779 | 114,070 | 1,074 | 965 | 1,657 | 7,433 | 163,978 | |
RECIPIENT | |||||||
State Revenue Committee | 38,779 | 114,070 | 1,074 | 965 | 1,657 | - | 156,545 |
Local government | - | - | - | - | - | 7,433 | 7,433 |
38,779 | 114,070 | 1,074 | 965 | 1,657 | 7,433 | 163,978 | |
KYRGYZSTAN | |||||||
Bozymchak licence and legal entity | - | 3,533 | 544 | - | - | 1,632 | 5,709 |
RECIPIENT | |||||||
State Tax Administration (central government) | - | 3,123 | 544 | - | - | 1,322 | 4,989 |
Local government | - | 410 | - | - | - | 310 | 720 |
- | 3,533 | 544 | - | - | 1,632 | 5,709 | |
Payments to Governments | 38,779 | 117,603 | 1,618 | 965 | 1,657 | 9,065 | 169,687 |
(1) The Mineral Extraction Tax is payable on the value of the mineral resources extracted based on the average price of the minerals on the London Metal Exchange or at the London Precious Metal Exchange. Royalties are paid by the Bozymchak operation once metal is sold with a portion thereof paid to local government.
(2) Payments made as required under subsoil use license.
(3) Infrastructure and social payments of $7.4 million made in Kazakhstan represent payments made to bodies, associations, trusts and other public interest groups located in the regions in which the Group operates. These payments include the transfer of assets at their book value, which the Group regards as infrastructure and social payments, as these benefit local communities. The infrastructure payments reflected as part of the Bozymchak operation includes a statutory infrastructure development levy which is based on a percentage of revenues. Part of this payment is made to local government.
A copy of this report can be found on the Company's website at http://www.kazminerals.com/en/investors_media/investor_library
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