Report on Payments to Governments 2019
Report on payments to governments 2019
This report details payments to governments made by
This report has been prepared in accordance with the requirements of Part 2A of the Transparency (Directive 2004/109/EC) Regulations, 2007 (as amended) (“Part 2A”) and Part 26 of the Companies Act 2014 (“Part 26”). Part 2A and Part 26 enact in
This report is available for download at www.kenmareresources.com/investors/reports-and-presentations
The Group consists of the parent company (
The parent company,
Scope of report
Disclosure of payments to governments is required in respect of payments arising from the exploration, discovery, development and extraction of minerals; the payments included within this report therefore relate to the Group’s mining and processing activities at the
Groups are required to prepare a consolidated report disclosing payments made by the parent company and its subsidiary undertakings. Accordingly, this report reflects payments made by the Group companies conducting mining and processing activities, namely KMML and KMPL. The Group owns 100% of these entities and the amounts reflect 100% of the payments made by these subsidiary undertakings.
The payments disclosed in this report are on a cash basis.
The payments made to governments are required to be analysed into the following categories:
- Production entitlements
- Taxes - taxes levied on the income, production or profits of companies, excluding taxes levied on consumption, value added taxes, personal income taxes, sales taxes, property taxes or municipal charges.
KMML is subject to a corporation tax rate of 35% of the taxable profits of its
The margin applied to the cash costs of mining is stipulated in the Mineral Licensing Contract, dated
KMPL has the benefit of operating within an
- Royalties – typically amounts levied based on production levels or revenues.
KMML is subject to a mining royalty of 3% based on HMC sold to KMPL. The royalty is calculated by multiplying the cash costs of producing HMC, plus the margin as detailed above by 3%.
KMPL is subject to a revenue royalty of 1% on revenue recognised.
- Bonuses - signature, discovery and production bonuses.
- Fees - licence fees, rental fees, entry fees and other considerations for mining licences or concessions.
- Infrastructure improvements - payments to governments for infrastructure other than in circumstances where the infrastructure is expected to be primarily dedicated to operational activities throughout its useful life. Payments that form part of the Group’s social investment activities (which are primarily organised and administered by
Kenmare Moma Development Association) are excluded. Such payments would include contributions in respect of local schools, healthcare or community facilities, or improvements to the general environment of local communities.
“Government” means any national, regional or local authority of a country, and includes a department, agency or undertaking that is a subsidiary undertaking where the authority is the parent undertaking.
All payments referred to this report are made to the Government of
Under Part 2A and Part 26, a payment need not be disclosed if it is a single payment of less than the equivalent of €100,000 or a series of related payments in a single year whose total is less than the equivalent of €100,000.
Analysis by project/entity
An analysis of payments by project is required where payments are attributable to specific projects. Projects are defined as operational activities which are governed by a single contract, licence, lease, concession or similar legal agreement, and form the basis for payment liabilities with a government. Where agreements are substantially interconnected in operating and geographical terms, with substantially similar terms, those agreements should be treated as a single project. Payments may be disclosed at an entity level where payments are made in respect of obligations imposed at that entity level rather than at a project level. Payments below are disclosed at the entity level for KMML and KMPL, which between them operate the
The amounts shown in this report have been rounded to the nearest
PAYMENTS TO GOVERNMENTS – 2019
|Production entitlements||Taxes||Royalties||Dividends||Bonuses||Fees||Infrastructure improvements||Total|
|Government of ||-||2,310||5,603||-||-||-||-||7,913|
This report for
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