Last checked at 19 Dec 2017 07:00
19 December 2017 | LSE: PDL |
Petra Diamonds Limited
("Petra", "the Group" or "the Company")
FY 2017 Payments to Governments Report
Petra Diamonds Limited publishes the Company's Payments to Governments Report for the year ended 30 June 2017 ("the Year" or "FY 2017") (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 includes 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$7.0 million in FY 2017 (FY 2016: US$8.9 million).
Payments per Country
Country | Expense Type (US$ thousand)1,2 | |||||
Corporate taxes | Mining and other license fees | Royalties | Infrastructure improvements | Other | Total | |
South Africa | ||||||
National | 1,476 | |||||
Local | 723 | 730 | ||||
Total | 2,929 | |||||
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 | 2,917 | |||||
Tanzania Revenue Authority | 237 | 444 | ||||
Energy and Water Utilities Authority & Rural Energy Authority | 152 | |||||
Zonal Mine Officer-Shinyanga | 331 | |||||
Total | 4,081 | |||||
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 | |
SARS | 340 | |||||
City of Tshwane | 14 | |||||
Local Schools | 263 | |||||
Total | 617 | |||||
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 | |
SARS | 869 | |||||
Kgatelopele Local Municipality | 456 | 233 | ||||
Total | 1,558 | |||||
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 | |
SARS | 112 | |||||
Letsemeng Local Municipality | 4 | 74 | ||||
Total | 190 | |||||
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 | |
SARS | 155 | |||||
Sol Plaatjie Local Municipality | 390 | |||||
Total | 545 | |||||
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 | 2,917 | |||||
Tanzania Revenue Authority | 237 | 444 | ||||
Energy and Water Utilities Authority & Rural Energy Authority | 152 | |||||
Zonal Mine Officer-Shinyanga | 331 | |||||
Total | 4,081 | |||||
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 | 19 | |||||
Total | 19 | |||||
1. Payments are shown in US$ equivalent amounts for the financial year ending 30 June 2017.
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.
~ Ends ~
For further information, please contact:
Petra Diamonds, London Telephone: +44 20 7494 8203
Cathy Malins cathy.malins@petradiamonds.com
Buchanan Telephone: +44 20 7466 5000
(PR Adviser)
Bobby Morse bobbym@buchanan.uk.com
Anna Michniewicz annam@buchanan.uk.com
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About Petra Diamonds Limited
Petra Diamonds is a leading independent diamond mining group and an increasingly important supplier of rough diamonds to the international market. The Company has interests in five producing operations: three underground mines in South Africa (Finsch, Cullinan and Koffiefontein), the Kimberley Ekapa Mining joint venture (including the Kimberley Underground mine and extensive tailings retreatment operations) and one open pit mine in Tanzania (Williamson). It also maintains an exploration programme in Botswana and South Africa.
Petra has a core objective to steadily increase annual production to 5.0 - 5.3 million from FY 2019 onwards. The Group has a significant resource base in excess of 300 million carats.
Petra conducts all operations according to the highest ethical standards and will only operate in countries which are members of the Kimberley Process. 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.