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.
KAZ Minerals is a significant employer and tax payer, and we support local enterprise by procuring over half of our goods and services in Kazakhstan.
We respect the rights of anyone who comes into contact with our business, for instance by ensuring good working conditions and consulting with communities. We also work to minimise the negative impacts of our operations, by controlling noise, dust and traffic levels and by ensuring we don’t exhaust vital resources that communities need.
KAZ Minerals recognises all human rights as defined in the Universal Declaration of Human Rights. We are committed to ensuring our operations do not infringe on these rights, for instance by providing fair, safe and secure working conditions in line with the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work. We respect the right to freedom of association and consult our employees and trade unions about changes to our business and employment conditions.
Local communities are consulted during project development and about major operational changes that may affect them. We respect and protect local heritage and culture.
We do not tolerate any form of child or forced labour at any of our operations. We comply with local legislation with regard to employee age, and as such do not employ anyone under the age of 18.
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 makes significant investments each year in schools, hospitals, cultural and sports facilities, and local infrastructure. These investments are either:
- Voluntary: we receive many requests for donations and prioritise those that relate to our business, or which benefit our employees as well as the community
- Agreed with the local authorities.
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.
The Group takes a responsible and transparent approach to the management and control of its tax affairs and related tax risks, and has therefore adopted a tax strategy, which has been approved by the Board, that is aimed at achieving the objectives, thereby aligning it with the Group’s long-term strategy:
- the Group’s tax risks are assessed as part of the Group’s formal governance processes and are reviewed by the Chief Financial Officer who reports them to the Audit Committee on a regular basis;
- significant tax risks, implications arising from those risks and potential mitigating actions are considered by the Board when strategic decisions are being taken;
- the Group builds an equitable relationship with the tax authorities in the jurisdictions in which it operates.
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.
We currently have one major growth project under construction – Aktogay, with another, Koksay, at scoping stage. Both are greenfield projects, and although they are located in remote scarcely populated areas, we took any possible disturbance our operations or the necessary new infrastructure could cause into account during the feasibility stage. Our existing operations plan mining and production activities accordingly and resort to resettlement only where it is unavoidable.