Petra Diamonds : Report on Payments to Governments

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: [phone]

Cathy Malins

Des Kilalea     

Marianna Bowes                                                         [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 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.