REG-Petra Diamonds: Report on Payments to Governments
17/11/2020 07:10
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)
1. Payments are shown in US$ equivalent amounts for the financial year ending
30 June 2020.
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
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.
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