Company Announcements

Extractive Sector: Payments to Govts Report 2018

Source: RNS
RNS Number : 8277D
Jardine Matheson Hldgs Ltd
28 June 2019
 

Jardine Matheson Holdings Limited
Extractive Sector: Payments to Governments Report 2018



Introduction

Background

The UK Reports on Payments to Governments Regulations 2014 (UK Regulations), as amended in December 2015, require UK companies in the extractive sector to publicly disclose payments made to governments in the countries where they undertake extractive operations. These UK Regulations enact domestic rules in line with Directive 2013/34/EU and apply to large UK incorporated companies that are involved in the exploration, prospection, discovery, development and extraction of minerals, oil, natural gas deposits, or other materials. The aim of Directive 2013/34/EU and the UK Regulations is to enhance transparency in the extractive sector by imposing reporting requirements relating to payments to governments.

The UK's Disclosure Guidance and Transparency Rules extend the disclosure requirements to companies that have securities listed on a UK regulated market, including Jardine Matheson Holdings Limited (in which PT Pamapersada Nusantara and PT Danusa Tambang Nusantara, indirect subsidiaries of PT Astra International Tbk (hereinafter referred to as "Astra"), are two of its subsidiaries).

Reporting Entities

This Report provides an overview of the payments to governments made by PT Pamapersada Nusantara and its subsidiaries undertakings (hereinafter referred to as "Pama"), and PT Danusa Tambang Nusantara and its subsidiaries undertakings (hereinafter referred to as "Danusa") for the year ended 2018 (1st January - 31st December 2018) in respect of their activities in the extractive sector which are located in Indonesia.

PT Agincourt Resources was acquired by PT Danusa Tambang Nusantara in 2018. A full year's activities of PT Agincourt Resources are included in this report.

Extractive Activities

Pama and Danusa, through their subsidiaries are engaged in extractive operations as a coal and gold mining concession holder in several locations in Indonesia (North Sumatra, Central Kalimantan, South Kalimantan and West Nusa Tenggara). Pama is also involved in mining contracting activities for third parties.


Reporting Principles

Scope and Validity

This Report discloses payments made to governments for activities related to exploration, discovery, development and extraction for legal entities involved in extractive activities.

Government

Government includes any national, regional or local authority of a country, and includes a department, agency or undertaking (i.e. corporation) controlled by that authority.

Project

Payment types are required to be reported by project. A project is defined as the operational activities that are governed by a single contract, licence, lease, concession or similar legal arrangements and form the basis for payment liabilities with a government. If multiple and such agreements are 'substantially interconnected', they are to be treated as a single project. 'Substantially interconnected' means forming a set of operationally and geographically integrated contracts, licences, leases or concessions or related agreements with substantially similar terms that are signed with a government, giving rise to payment liabilities.

Reporting Currency

Amounts in this Report are expressed in US Dollars (USD). Payments to Government other than in USD are translated based on the average annual foreign exchange rate.

Materiality

Payments made as a single payment, or as a series of related payments, that equal or exceed USD114,362 (equivalent to GBP86,000) during the year, are required to be disclosed.

Payment

All payments on this Report are presented on cash basis.

 

i.    Taxes

These payments represent several taxes levied on the income, production or profits of companies. These include corporate income tax and land and building tax for mining sector. Value added taxes, personal income taxes, sales (export) taxes, land and building tax for non-mining sector, motor vehicle licence and catering service taxes are excluded.
 

ii.    Royalties

These payments represent usage-based payments for the right to extract natural resources which are calculated by a specific percentage of sales amount.
 

iii.    Fees

These payments are typically levied on the right to use a geographical area for exploration, development and production.
 

There were no payments to Government for dividends, bonuses, production entitlements and infrastructure improvements.


Consolidated Overview

The consolidated overview discloses the sum of Astra's payments to Government in Indonesia which presented in Governments Report and Projects Report.

Governments Report

The following table discloses the sum of Astra's payments per payment type to State Treasury (Kas Negara).


(in USD currency)

 

Taxes

Royalties

Fees

Total

State Treasury
(Kas Negara)

328,560,547

87,864,366

4,440,039

420,864,952

 

Projects Report

The table below discloses the sum of Astra's payments per project and per payment type.

(in USD currency)

 

Taxes

Royalties

Fees

Total

Governments

Project

 

 

 

 

 

Kapuas, Central Kalimantan Project

59,466,806

66,178,440

3,779,727

129,424,973

State Treasury (Kas Negara)

Martabe, North Sumatra Project

106,341,382

21,322,794

660,312

128,324,488

State Treasury (Kas Negara)

Banjar, South Kalimantan Project

128,083

363,132

-

491,215

State Treasury (Kas Negara)

Entity Level Payment

 

 

 

 

 

Pamapersada Nusantara

143,368,235

-

-

143,368,235

State Treasury (Kas Negara)

Pama Indomining

537,939

-

-

537,939

State Treasury (Kas Negara)

Multi Prima Universal

4,072

-

-

4,072

State Treasury (Kas Negara)

Kalimantan Prima Persada

18,714,030

-

-

18,714,030

State Treasury (Kas Negara)

TOTAL

328,560,547

87,864,366

4,440,039

420,864,952

 

 

This Report is available for download from http://www.jardines.com/en/ir/regulatory.html.

 

Jonathan Lloyd, Jardine Matheson Limited
for and on behalf of Jardine Matheson Holdings Limited

28th June 2019


www.jardines.com


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
PGREANKPADANEEF