Report on Payments to Governments FY 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.

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.

 

PLEASE FOLLOW THE LINK TO DOWNLOAD THE FULL ANNOUNCEMENT