TIDMKAZ
RNS Number : 9782Q
KAZ Minerals PLC
24 June 2020
24 June 2020
REPORT ON PAYMENTS TO GOVERNMENTS FOR THE YEARED 31 DECEMBER
2019
KAZ Minerals PLC ("KAZ Minerals" or "the Group") today provides
information in accordance with DTR4.3A and The Reports on Payments
to Governments Regulations 2014 (the "Regulations") in respect of
payments made by the Group for the year ended 31 December 2019.
Payments to Governments
The table below represents the Group's consolidated report on
payments made to governments under the Regulations. The table
includes all payments made in excess of GBP86,000 ($110,000) for
activities related to the exploration, prospection, discovery,
development and extraction of minerals by project, government type
and country, rounded to the nearest thousand US Dollars. Where the
payment relates to activities that are reportable under the
Regulations, as well as to activities which are not reportable, the
payment has been included in its entirety if it is not possible to
disaggregate it.
For the year ended 31 December 2019, payments to governments
under the Regulations amounted to $325.8 million.
Mineral
Extraction Infrastructure
Corporate Tax and Withholding Signature Licence and social
US$'000 income taxes royalties(1) tax bonus fee(2) payments(3) Total
KAZAKHSTAN
Artemyevsky - license - 14,116 - - - - 14,116
Irtyshsky - license - 7,853 - - - - 7,853
Orlovsky - license - 17,676 - - - - 17,676
Legal entity 16,582 - - - - 3,618 20,200
--------------------- -------------- ------------- -------------- -------------- ------- -------------- -------
Total East Region 16,582 39,645 - - - 3,618 59,845
Aktogay licence and
legal entity 30,245 90,115 9,847 - 1,011 11,887 143,105
Bozshakol licence and
legal entity 20,376 71,029 12,551 - 133 5,657 109,746
Koksay licence and
legal entity - - - - - - -
Other legal entities 1,252 - - - - - 1,252
--------------------- -------------- ------------- -------------- -------------- ------- -------------- -------
68,455 200,789 22,398 - 1,144 21,162 313,948
--------------------- -------------- ------------- -------------- -------------- ------- -------------- -------
RECIPIENT
State Revenue
Committee 68,455 200,789 22,398 - 133 3,608 295,383
Local government - - - - 1,011 17,554 18,565
--------------------- -------------- ------------- -------------- -------------- ------- -------------- -------
68,455 200,789 22,398 - 1,144 21,162 313,948
--------------------- -------------- ------------- -------------- -------------- ------- -------------- -------
KYRGYZSTAN
Bozymchak licence and
legal entity - 8,444 2,703 - - 171 11,318
--------------------- -------------- ------------- -------------- -------------- ------- -------------- -------
RECIPIENT
State Tax
Administration
(central government) - 5,852 2,703 - - - 8,555
Local government - 2,592 - - - 171 2,763
--------------------- -------------- ------------- -------------- -------------- ------- -------------- -------
- 8,444 2,703 - - 171 11,318
--------------------- -------------- ------------- -------------- -------------- ------- -------------- -------
RUSSIA
Baimskaya licence and
legal entity - - - - - 548 548
--------------------- -------------- ------------- -------------- -------------- ------- -------------- -------
RECIPIENT
Federal Tax Service - - - - - - -
Local government - - - - - 548 548
- - - - - 548 548
--------------------- -------------- ------------- -------------- -------------- ------- -------------- -------
UNITED KINGDOM
Legal entity paid to
HMRC - - - - - - -
--------------------- -------------- ------------- -------------- -------------- ------- -------------- -------
Total Payments to
Governments 68,455 209,233 25,101 - 1,144 21,881 325,814
--------------------- -------------- ------------- -------------- -------------- ------- -------------- -------
(1) The Mineral Extraction Tax is payable in Kazakhstan on the
value of the mineral resources extracted based on the average price
of the minerals on the London Metal Exchange or at the London
Bullion Market Association. Royalties are paid by Bozymchak on sold
metal. Mineral Extraction Tax includes taxes paid on water
extraction.
(2) Payments made as required under subsoil use license.
(3) Infrastructure and social payments represent payments made
to bodies, associations, trusts, state-owned enterprises and other
public interest groups located in the regions in which the Group
operates. These payments include the transfer of assets at their
book value, which the Group regards as social payments because they
benefit the local communities.
A copy of this report can be found on the Company's website at:
https://www.kazminerals.com/investors/news/
For further information please contact:
KAZ Minerals PLC
====================== =========================== ======================
Chris Bucknall Investor Relations, London Tel: +44 20 7901 7882
Anna Mallere Investor Relations, London Tel: +44 20 7901 7814
Maksut Zhapabayev Corporate Communications, Tel: + 7 727 244 03
Almaty 53
====================== =========================== ======================
Brunswick Group
====================== =========================== ======================
Carole Cable, Charlie
Pretzlik Tel: +44 20 7404 5959
====================== =========================== ======================
REGISTERED OFFICE
6th Floor, Cardinal Place, 100 Victoria Street, London SW1E 5JL,
United Kingdom.
NOTES TO EDITORS
KAZ Minerals is a high growth copper company focused on large
scale, low cost, open pit mining in Kazakhstan, Russia and
Kyrgyzstan. It operates the Aktogay and Bozshakol open pit copper
mines in the East Region and Pavlodar region of Kazakhstan, three
underground mines and associated concentrators in the East Region
of Kazakhstan and the Bozymchak copper-gold mine in Kyrgyzstan. In
2019, total copper production was 311 kt with by-products of 201
koz of gold, 3,382 koz of silver and 38 kt of zinc in concentrate.
The Group acquired the Baimskaya project in the Chukotka region of
Russia in January 2019, one of the world's most significant
undeveloped copper assets, with the potential to become a large
scale, low cost, open pit copper mine.
The Group's new operations at Aktogay and Bozshakol have
delivered industry leading production growth and transformed KAZ
Minerals into a company dominated by world class, open pit copper
mines.
Aktogay is a large scale, open pit mine similar to Bozshakol,
with a remaining mine life of around 25 years (including the
expansion project) at an average copper grade of 0.35% (oxide) and
0.33% (sulphide). Aktogay commenced production of copper cathode
from oxide ore in December 2015 and copper in concentrate from
sulphide ore in February 2017. The operating sulphide concentrator
has an annual ore processing capacity of 25 million tonnes and the
sulphide processing capacity will be doubled to 50 million tonnes
with the addition of a second concentrator by the end of 2021.
Aktogay is competitively positioned on the global cost curve and
will produce an average of 100 kt of copper per year from sulphide
ore until 2021, increasing to 170 kt per year from 2022 to 2027,
after the second concentrator commences operations. Copper
production from oxide ore will be in the region of 20 kt per annum
until 2024.
Bozshakol is a first quartile asset on the global cost curve
with an annual ore processing capacity of 30 million tonnes and a
remaining mine life of c.40 years at an average copper grade of
0.36%. The mine and processing facilities commenced output in 2016
and will produce an average of 100 kt of copper cathode equivalent
and 120 koz of gold in concentrate per year over the first 10 years
of operations.
The Peschanka deposit within the Baimskaya licence area in
Russia has JORC resources of 9.5 Mt of copper at an average grade
of 0.43% and 16.5 Moz of gold at an average grade of 0.23 g/t. The
project is located in a region identified by the Russian Government
as strategically important for economic development and will
benefit from the construction of state-funded power and transport
infrastructure and the provision of tax incentives. The estimated
capital budget for construction is around $7 billion, with c.10% to
be incurred after the commencement of production. The detailed
parameters of the project are to be confirmed on completion of the
feasibility study by the end of 2020. The Group expects the project
to generate a significant NPV uplift and an attractive IRR at
analyst consensus copper prices. The development of Baimskaya will
enable the Group to continue its high growth trajectory, adding a
large scale, long life asset to the Group's portfolio.
KAZ Minerals is listed on the London Stock Exchange and the
Kazakhstan Stock Exchange and employs around 16,000 people,
principally in Kazakhstan.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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