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24.06.2020

Report on payments to governments for the year ended 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 £86,000 ($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.

Table

US$'000

Corporate income tax

Mineral Extraction Tax and Royalties(1)

Withholding tax

Signature bonus

Licence fee(2)

Infrastructure and social 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 license and legal entity

 30,245 90,115 9,847

-

1,011

11,887

 143,105

Bozshakol license and legal entity

20,376

71,029

 12,551

-

 133

5,657

109,746

Koksay license 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.

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