REPORT ON PAYMENTS TO GOVERNMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

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 2018.

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 ($114,000) for activities related to the exploration, prospection, discovery, development and extraction of minerals by project, government type and country, rounded to the nearest thousand US Dollars. Where the payment relates to activities that are reportable under the Regulations, as well as to activities which are not reportable, the payment has been included in its entirety if it is not possible to disaggregate it.

For the year ended 31 December 2018, payments to governments under the Regulations amounted to $314.5 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

–

 12,584

–

 – –

–

 12,584

Irtyshsky – License

–

 7,552

–

–

 359 –

7,911

Orlovsky – License

–

25,520

 – –

–

–

25,520

Yubileyno-Snegirihinsky – License

–

 

–

 –

145

 – 145

Legal entity

 36,684

–

 –

–

 –

3,258

 39,942

Total East Region

 36,684

45,656

–

 – 504 3,258

86,102

Aktogay license and legal entity

 11,636 69,451 16,378

–

1,011

1,961 

 100,437

Bozshakol license and legal entity

2,206

84,385

 24,720

–

 148

4,171

115,630

Koksay license and legal entity

 –

–

 –

–

–

– 

– 

Other legal entities

 556

–

–

 –

–

–

556
 

51,082

 199,492 41,098 –

1,663

 9,390

302,725

RECIPIENT

              

State Revenue Committee

51,082

 199,492

41,098

 – 652 –

292,324 

Local 

government

–

 – – – 1,011

9,390

10,401
  51,082

199,492

41,098

 –

1,663

 9,390

302,725 
               

KYRGYZSTAN

              

Bozymchak licence and legal entity

– 

8,690 

 –

–

–

– 

8,690

RECIPIENT

              

State Tax Administration (central government)

–

5,766 

–

 – –

– 

 5,766

Local 

government

–

 2,924 

–

 – – –

2,924
 

–

8,690

–

 –

–

–

 8,690
 UNITED KINGDOM              
Legal entity paid to HMRC 3,098 – – – – – 3,098
               

Total Payments to Governments

54,180

 208,182 41,098 – 1,663 9,390 314,513
  1. The Mineral Extraction Tax is payable in Kazakhstan 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 Bullion Market Association. Royalties are paid by Bozymchak on sold metal.
  2. Payments made as required under subsoil use licence.
  3. Infrastructure and social payments represent payments made to bodies, associations, trusts, state-owned enterprises 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 social payments because they benefit the local communities.

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