Payments to Governments Report

RNS Number : 8314P

Petra Diamonds Limited

15 October 2019

 

15 October 2019

Petra Diamonds Limited

("Petra" or the "Company")

FY 2019 Payments to Governments Report

Petra Diamonds Limited publishes the Company's Payments to Governments Report for the year ended 30 June 2019 ("the Year" or "FY 2019") (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$23.1 million in FY 2019 (FY 2018: US$25.6 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	7,177		7,622
Local					615
Total						15.414

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			5,581
Tanzania Revenue Authority	481	930			112
Energy and Water Utilities Authority & Rural Energy Authority					166
Zonal Mine Officer-Shinyanga		432
Total						7,702

 

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			843
City of Tshwane Municipality					26
Total						869

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	7,177		6,633
Kgatelopele Local Municipality					400
Total						14,210

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			145
Letsemeng Local Municipality					169
Total						314

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			5,581
Tanzania Revenue Authority	481	930			112
Energy and Water Utilities Authority & Rural Energy Authority					166
Zonal Mine Officer-Shinyanga		432
Total						7,702

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					21
Total						21

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]

Cathy Malins

Des Kilalea     

Marianna Bowes                                                         [e-mail]

Buchanan                                                                  Telephone: [phone]

(PR Adviser)

Bobby Morse

Ariadna Peretz                                                            [e-mail] 

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). Petra also conducts a limited exploration programme in Botswana and South Africa.

Petra's strategy is to focus on value rather than volume production by optimising recoveries from its high-quality asset base in order to maximise their efficiency and profitability. The Group has a significant resource base of ca. 250 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. The Company's US$650 million loan notes due in 2022 are listed on the Global Exchange market of the Irish Stock Exchange. For more information, visit www.petradiamonds.com.

 

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