Extractive Sector; Payments to Govts Report 2015

RNS Number : 6375C

Jardine Matheson Hldgs Ltd

29 June 2016

Jardine Matheson Holdings Limited
Extractive Sector; Payments to Governments Report 2015

Introduction

Background

The UK Reports on Payments to Governments Regulations 2014 (UK Regulations), as amended in December 2015, require UK companies in the extractive sector to publicly disclose payments made to governments in the countries where they undertake extractive operations. These UK Regulations enact domestic rules in line with Directive 2013/34/EU and apply to large UK incorporated companies that are involved in the exploration, prospection, discovery, development and extraction of minerals, oil, natural gas deposits, or other materials. The aim of Directive 2013/34/EU and the UK Regulations is to enhance transparency in the extractive sector by imposing reporting requirements relating to payments to governments.

The UK's Disclosure Rules and Transparency Rules extend the disclosure requirements to companies that have securities listed on a UK regulated market, including Jardine Matheson Holdings Limited (under which, PT Astra International Tbk is one of its subsidiaries).

Reporting Entities

This Report provides an overview of the payments to governments made by the Jardine Matheson Holdings Limited Group, and in particular PT Astra International Tbk and its subsidiary undertakings (hereinafter referred to as "Astra") for the year 2015 in respect of its activities in the extractive sector which are located in Indonesia.

Extractive Activities

Astra, through its indirect subsidiaries is engaged in extractive operations as a coal and gold mining concession holder in several locations in Indonesia (Central Kalimantan, South Kalimantan and West Nusa Tenggara). Astra is also involved in mining contracting activities for third parties through PT Pamapersada Nusantara, an indirect subsidiary.

Reporting Principles

Scope and validity

This Report discloses payments made to governments for activities related to exploration, discovery, development and extraction for legal entities involved in the extraction of minerals or other materials.

Government

Government includes any national, regional or local authority of a country, and includes a department, agency or undertaking (i.e. corporation) controlled by that authority.

Project

Payment types are required to be reported by project. A project is defined as the operational activities that are governed by a single contract, licence, lease, concession or similar legal arrangements and form the basis for payment liabilities with a government. If multiple and such agreements are 'substantially interconnected', they are to be treated as a single project. 'Substantially interconnected' means forming a set of operationally and geographically integrated contracts, licences, leases or concessions or related agreements with substantially similar terms that are signed with a government, giving rise to payment liabilities.

Reporting Currency

Amounts in this Report are expressed in US Dollars (USD). Payments to Government other than in USD are translated based on the average annual foreign exchange rate.

Materiality

Payments made as a single payment, or as a series of related payments, that equal or exceed USD 127,000 (equivalent to GBP 86,000) during the year, are required to be disclosed.

Payment

All payments on this Report are presented on cash basis.

i. Taxes

These payments represent several taxes levied on the income, production or profits of companies. These include corporate income tax and land and building tax for mining sector. Value added taxes, personal income taxes, sales (export) taxes, land and building tax for non-mining sector, motor vehicle license and catering service taxes are excluded.

ii. Royalties

These payments represent usage-based payments for the right to extract natural resources which are calculated by a specific percentage of sales amount.

iii. Fees

These payments are typically levied on the right to use a geographical area for exploration, development and production. Administrative fees, payments for permits and payments for services provided by a government are excluded.

There were no payments to Government for dividends, bonuses, production entitlements and infrastructure improvements.

Indonesia

Governments Report

The following table discloses the sum of Astra's payments per payment type to State Treasury (Kas Negara).

	Taxes	Royalties	Fees	Dividend	Bonuses	Production Entitlements	Infrastructure Improvements	Total USD
State Treasury (Kas Negara)	139,139,056	15,543,610	3,643,236	-	-	-	-	158,325,902

Projects Report

The table below discloses the sum of Astra's payments per project and per payment type.

	Taxes	Royalties	Fees	Dividend	Bonuses	Production Entitlements	Infrastructure Improvements	Total USD
Project
Kapuas, Central Kalimantan Project	3,031,079	13,776,103	3,410,005	-	-	-	-	20,217,187
North Barito, Central Kalimantan Project	-	370,129	233,231	-	-	-	-	603,360
Banjar, South Kalimantan Project	-	1,397,378	-	-	-	-	-	1,397,378

Entity Level Payment
Pamapersada Nusantara	136,107,977	-	-	-	-	-	-	136,107,977
Total	139,139,056	15,543,610	3,643,236	-	-	-	-	158,325,902