KAZ Minerals is a significant employer and tax payer, and one of the fastest growing resource companies bringing innovation and long-term prospects for the mining industry in Kazakhstan.The long-term prosperity of our business relies on us addressing the economic, social and environmental implications of our operations on local communities and Kazakhstan as a whole. Establishing and maintaining positive relations with communities, and contributing to the wider economy through employment, paying taxes, using local suppliers, and investing in community infrastructure helps to ensure our local licence to operate, as well as positioning us as an attractive employer.
The Group also prioritises local procurement to assist diverse economic growth within Kazakhstan. During 2016 the level of procurement from outside Kazakhstan has grown due to the development of the major growth projects at Bozshakol and Aktogay, which require a higher proportion of procurement from overseas sources. In the East Region local procurement remained high, at 76% of total spending.
KAZ Minerals recognises all human rights as defined in the Universal Declaration of Human Rights.
Local communities are consulted during project development and about major operational changes that may affect them. We respect and protect local heritage and culture.
In Kazakhstan, local authorities consult with communities about relevant changes to our activities. We support their efforts and when we develop new operations, we involve local residents in line with the legal requirement of our subsoil licenses. Investment priorities for improving the lives of local people are determined in consultation with regional government officials, who ensure that social investments made under our licence agreements are made where they are needed most.
Local economic development
Our business has a positive impact on many communities by providing economic opportunities and improving local infrastructure. We support local suppliers and producers and aim to procure in Kazakhstan using foreign products and services only where there is no local alternative.
KAZ Minerals supports communities in Kazakhstan and Kyrgyzstan by investing in projects that benefit wider society in the areas close to its operations as well as national projects. Social investments totalling $8 million were made in 2016 focused on healthcare, infrastructure development, childcare, education and sport.
Revenue and tax transparency
The Group is subject to taxation in the UK, Kazakhstan and the various foreign countries in which it operates. The Group’s core objectives in managing and controlling its tax affairs and related tax risks are as follows:
- ensuring compliance with applicable rules and regulations in the jurisdictions in which the Group operates; and
- structuring the business in the most efficient and transparent manner with the emphasis on the maximisation of shareholder value.
Please see the National Context section for details of The Group's economic value generated and distributed, including taxes paid.
Our approach is guided by the subsoil law, which requires us to stop operations that pose a safety risk to the communities. Where there is no alternative to continue or commence operations without disturbing local population, we are required to manage the resettlement process. Our goal is to minimise the adverse impact of our activity on local communities.