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Petra Diamonds Ltd - Report on Payments to GovernmentsPetra Diamonds Ltd - Report on Payments to Governments
PR Newswire
London, November 16
| 17 November 2020 | LSE: PDL |
Petra Diamonds Limited
("Petra" or the "Company")
FY 2020 Payments to Governments Report
Petra Diamonds Limited publishes the Company’s Payments to Governments Report for the year ended 30 June 2020 (“the Year” or “FY 2020”) (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 and excise duties and property rates and 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$24.5 million in FY 2020 (FY 2019: US$23.1 million).
Payments per country
| Country | Expense Type (US$ thousand)1,2 | |||||
| Corporate taxes | Mining and other license fees | Royalties | Infrastructure improvements | Other | Total | |
| South Africa | ||||||
| National | 10.453 | 2.844 | 0.716 | |||
| Local | 3.776 | |||||
| Total | 17.789 | |||||
| Country | Expense Type (US$ thousand)1,2 | |||||
| Corporate taxes | Mining and other license fees | Royalties | Infrastructure improvements | Other | Total | |
| United Kingdom | ||||||
| National | (0.340) | |||||
| Local | 0.106 | |||||
| Total | (0.234) | |||||
| Country | Expense Type (US$ thousand)1,2 | |||||
| Corporate taxes | Mining and other license fees | Royalties | Infrastructure improvements | Other | Total | |
| Tanzania | ||||||
| National | 3.522 | 3.145 | ||||
| Local | 0.282 | |||||
| Total | 6.949 | |||||
Payments by mine / office
| 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 | |
| National | 4.039 | 0.543 | ||||
| Local | 0.018 | |||||
| Total | 4.600 | |||||
| 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 | |
| National | 1.363 | 2.195 | ||||
| Local | 0.716 | 3.470 | ||||
| Total | 7.744 | |||||
| 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 | |||
| National | 0.668 | 0.106 | ||||||
| Local | 0.162 | |||||||
| Total | 0.936 | |||||||
| Williamson | Expense Type (US$ thousand)1,2 | |||||
| Corporate taxes | Mining and other license fees | Royalties | Infrastructure improvements | Other | Total | |
| Tanzania | ||||||
| National | 3.522 | 3.145 | ||||
| Local | 0.282 | |||||
| Total | 6.949 | |||||
| Petra Diamonds Southern Africa (Pty) Ltd (RSA - HQ) | 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 | |
| National | 4.383 | |||||
| Local | 0.020 | |||||
| Total | 4.403 | |||||
| Petra Diamonds Ltd (UK - HQ) | 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 | |
| National | (0.340) | |||||
| Local | 0.106 | |||||
| Total | (0.234) | |||||
~ Ends ~
For further information, please contact:
Petra Diamonds, London Telephone: +44 20 7494 8203
Cathy Malins
Des Kilalea
Marianna Bowes investorrelations@petradiamonds.com
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 mine in Tanzania (Williamson).
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. 243 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, currently subject to restructuring, are listed on the Global Exchange market of the Irish Stock Exchange. For more information, visit www.petradiamonds.com.