FY 2018 Payments to Governments Report

RNS Number : 2355F

Petra Diamonds Limited

26 October 2018

 

26 October 2018

LSE: PDL

Petra Diamonds Limited

("Petra", "the Group" or "the Company")

FY 2018 Payments to Governments Report

Petra Diamonds Limited publishes the Company's Payments to Governments Report for the year ended 30 June 2018 ("the Year" or "FY 2018") (the "Report").

About this Report

This Report, which provides an overview of the payments to governments made by Petra Diamonds Limited, its subsidiaries and jointly controlled operations, is required under the United Kingdom's ("UK") Report on Payments to Governments Regulations 2014 (as amended) ("the Regulations"), which apply to large, UK-listed extractive companies. The Report aims to satisfy the Regulations as well as the Disclosure and Transparency Rules of the Financial Conduct Authority in the UK.

For the purposes of this Report, government will include any national, regional or local authority of a country, and includes a department, agency or entity that is a subsidiary of a government. It excludes any payments to State Owned Enterprises to procure goods or services from these enterprises typically consisting of utilities such as water and electricity.

This report is also available on the Company's website at: www.petradiamonds.com/investors/results-reports/.

Reporting threshold

This Report includes payments made which individually or collectively exceed GBP 86,000 within a financial year, as per the Regulations, however payments below this threshold may also be included.

Types of payments

1.     Corporate taxes

These are taxes paid by Petra on its income and profits in accordance with legislation enacted in the applicable jurisdictions, but exclude taxes levied on consumption (e.g. VAT, personal income taxes and sales taxes). Payments are reported net of refunds.

2.     Mining and other license fees

These are mining licenses and regional levies paid by Petra in accordance with legislation enacted in the applicable jurisdictions.

3.     Royalties

Royalties levied on the sale of rough diamonds. South African royalties are calculated on a sliding scale based on profitability and Tanzanian royalties are levied at a fixed rate. For more information, visit https://www.petradiamonds.com/about-us/who-we-are/where-we-operate/.

4.     Infrastructure improvements

These include Community Social Investment and Local Economic Development related expenditure on permanent infrastructure, which is mandatory spend required of the Company as per its Social and Labour Plans in South Africa.

5.     Other

Payments towards custom & excise duties and property rates & taxes.

There were no reportable payments to a government entity for production entitlements or signature, discovery or production bonuses during the Year.

Payments per government

Total payments to governments under the Regulations amounted to US$25.6 million in FY 2018 (FY 2017: US$7.0 million).

Payments per country

Country	Expense Type (US$ thousand)1,2
	Corporate taxes	Mining and other license fees	Royalties	Infrastructure improvements	Other	Total
South Africa
National	7,522		10,163
Local				902	1,005
Total						19,592

Country	Expense Type (US$ thousand)1,2
	Corporate taxes	Mining and other license fees	Royalties	Infrastructure improvements	Other	Total
Tanzania
Principal Secretary Ministry of Energy			4,109
Tanzania Revenue Authority	336	685			260
Energy and Water Utilities Authority & Rural Energy Authority					149
Zonal Mine Officer-Shinyanga		361
Local				190
Total						6,090

Payments by mine

Cullinan	Expense Type (US$ thousand)1,2
	Corporate taxes	Mining and other license fees	Royalties	Infrastructure and development for the benefit of mining communities	Other	Total
South African Revenue Service			828
City of Tshwane Municipality					23
Local Schools				203
Total						1,054

Finsch	Expense Type (US$ thousand)1,2
	Corporate taxes	Mining and other license fees	Royalties	Infrastructure and development for the benefit of mining communities	Other	Total
South African Revenue Service	7,522		9,124
Kgatelopele Local Municipality				507	346
Local Schools				30
Total						17,529

Koffiefontein	Expense Type (US$ thousand)1,2
	Corporate taxes	Mining and other license fees	Royalties	Infrastructure and development for the benefit of mining communities	Other	Total
South African Revenue Service			137
Letsemeng Local Municipality				76	156
Total						369

Kimberley Ekapa Mining Joint Venture	Expense Type (US$ thousand)1,2
	Corporate taxes	Mining and other license fees	Royalties	Infrastructure and development for the benefit of mining communities	Other	Total
South African Revenue Service			74
Sol Plaatjie Local Municipality				86	453
Total						613

Williamson	Expense Type (US$ thousand)1,2
	Corporate taxes	Mining and other license fees	Royalties	Infrastructure and development for the benefit of mining communities	Other	Total
Principal Secretary Ministry of Energy			4,109
Tanzania Revenue Authority	336	685			260
Energy and Water Utilities Authority & Rural Energy Authority					149
Zonal Mine Officer-Shinyanga		361
Local				190
Total						6,090

Petra Diamonds Southern Africa (Pty) Ltd	Expense Type (US$ thousand)1,2
	Corporate taxes	Mining and other license fees	Royalties	Infrastructure and development for the benefit of mining communities	Other	Total
City of Johannesburg					27
Total						27

1.     Payments are shown in US$ equivalent amounts for the financial year ending 30 June 2018.

2.     Certain financial data have been rounded. As a result of this rounding, the totals of data presented in this document may vary slightly from the actual arithmetical totals of such data.

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

~ Ends ~

For further information, please contact:

Petra Diamonds, London                                         Telephone: [phone]

Marianna Bowes                                                         [e-mail]

Salisha Ilyas                                                   

Buchanan                                                                  Telephone: [phone]

(PR Adviser)

Bobby Morse                                                               [e-mail]

Olivia Montefiore-Vita

About Petra Diamonds Limited

Petra Diamonds is a leading independent diamond mining group and a consistent supplier of gem quality rough diamonds to the international market. The Company has a diversified portfolio incorporating interests in three underground producing mines in South Africa (Finsch, Cullinan and Koffiefontein) and one open pit producing mine in Tanzania (Williamson). It announced in July 2018 the proposed disposal of its interest in the Kimberley Ekapa Mining joint venture in South Africa.  It also maintains an exploration programme in Botswana and South Africa, which is currently under review.

Petra's strategy is to focus on value rather than volume production by optimizing recoveries from its high quality asset base in order to maximize their efficiency and profitability. The Group has a significant resource base of ca. 290 million carats, which supports the potential for long-life operations.

Petra conducts all operations according to the highest ethical standards and will only operate in countries which are members of the Kimberley Process.  The Company aims to generate tangible value for each of its stakeholders, thereby contributing to the socio-economic development of its host countries and supporting long-term sustainable operations to the benefit of its employees, partners and communities. Petra is quoted with a premium listing on the Main Market of the London Stock Exchange under the ticker 'PDL' and is a constituent of the FTSE4Good Index. For more information, visit www.petradiamonds.com.

 

END

 

 

PGRFKPDDPBDDCKB