LONMIN PLC - Report on Payments to Governments for the year ended 30 September 2017

Release Date: 29/03/2018 13:00
Code(s): LON
 
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Report on Payments to Governments for the year ended 30 September 2017

Lonmin Plc (Incorporated in England and Wales)
(Registered in the Republic of South Africa under registration number 1969/000015/10)
JSE code: LON
Issuer Code: LOLMI & ISIN : GB00BYSRJ698 ("Lonmin")

LEI: 213800FGJZ2WAC6Y2L94

29 March 2018



Report on Payments to Governments for the year ended 30 September 2017

Introduction

This report sets out payments made by Lonmin Plc and its subsidiaries to governments during the
financial year ended 30 September 2017 (FY2017). This disclosure is required by the Reports on
Payments to Government Regulations 2014 (as amended in December 2015) (the Regulations), which
partially comprise the UK’s implementation of the EU Accounting Directive (Directive 2013/34/EU).

The Regulations apply to UK-incorporated organisations which are mining, quarrying or logging
undertakings, and which are publicly traded on a regulated market in the EU (in Lonmin Plc’s case, the
London Stock Exchange) or exceed certain thresholds as to their balance sheet, net turnover and
number of employees. The Regulations require such organisations to publish a report for each financial
year which describes payments made to governments for relevant extractive activities.

Basis of preparation and definitions

Legislation

This report is prepared in accordance with the Reports on Payments to Government Regulations 2014,
as amended by the Reports on Payments to Governments (Amendment) Regulations 2015. Publication
of this report is also intended to satisfy Lonmin Plc’s obligations under DTR 4.3A of the FCA’s Disclosure
Guidance and Transparency Rules.

Reporting entities

This report sets out payments made to Governments during FY2017 by Lonmin Plc and its subsidiaries in
connection with relevant activities (defined below). Payments have been disclosed at entity level, rather
than at project level. Payments made during FY2017 were not made in connection with specific projects
(i.e. 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).

Relevant activities

This report contains disclosures of payments made by Lonmin Plc or its subsidiaries in connection with
any activities involving the exploration, prospection, discovery, development or extraction of minerals or
other materials.
Government

The term “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.

Payment types

In accordance with the Regulations, this report discloses payments to governments, whether in cash or
in kind, which fall within the following categories:

    -   Taxes. This category includes payments of taxes levied on income, production or profits, but
        excludes any taxes levied on consumption (such as value added taxes and personal income or
        sales taxes).
    -   Royalties. Royalties are payments made for exercise of rights to extract minerals or other
        resources, often based on a proportion of the revenue associated with the extraction.
    -   Production entitlements. This category consists of payments made to a government in
        accordance with production sharing agreements. There were no reportable production
        entitlement payments made during FY2017.
    -   Dividends. This category consists of dividend payments to a government, but excludes any such
        dividends paid to a government in its capacity as a shareholder, provided that the dividend is
        paid to the government on the same terms as other shareholders, and is not paid in lieu of
        production entitlements or royalties. There were no reportable dividend payments made during
        FY2017.
    -   Bonuses. This category consists of signature, discovery and production bonuses paid to a
        government. There were no reportable bonus payments made during FY2017.
    -   Fees. This category consists of fees paid to a government in consideration for access to an area
        in which relevant activities are performed, and includes licence fees, rental fees, entry fees and
        other considerations for licences or concessions. There were no reportable payments of such
        fees during FY2017.
    -   Payments for infrastructure improvements. This category includes any payments to a
        government in connection with improvements being made to infrastructure (such as roads and
        bridges), other than in circumstances where the infrastructure is primarily dedicated to the
        paying entity’s operational activities. The Regulations do not require disclosure of social or
        community payments (for details of Lonmin’s contributions to local communities, please refer to
        the 2017 Sustainable Development Report, available on the Company’s website at
        www.lonmin.com). There were no reportable payments for infrastructure improvements during
        FY2017.


Materiality threshold

In accordance with the Regulations, payments with a value of less than £86,000 (whether as a single
payment or a connected series of payments) have not been included in the report.
Reporting currency

All payments disclosed below have been reported in US dollars. Payments denominated in currencies
other than US Dollars are translated at the exchange rate on the date of payment.

Rounding

The payments shown in this report are rounded to the nearest USD thousand. In the following tables
because of rounding, totals may not agree exactly with the sum of their component parts. Exact
amounts are shown in the data submitted and available on the UK Companies House website.



Payments to Governments by country during the year ended 30 September 2017

Paying entity                                                         Taxes         Royalties          TOTAL
                                                                    USD’000         USD’000           USD’000




Payments to the government of the United Kingdom:

Lonmin Plc                                                              $734                              $734



Payments to the government of South Africa:

Lonmin Plc (South African Branch)                                     $9,305                            $9,305

Akanani Mining (Pty) Ltd                                                 $41                                $41

Western Platinum Ltd1                                               $(1,795)           $4,553           $2,758

Eastern Platinum Ltd                                                                   $1,151           $1,151

Pandora Joint Venture                                                                   $156              $156

Total payments to the government of South Africa                      $7,550          $5,862           $13,411



Total payments to governments                                         $8,284          $5,862           $14,145



No reportable payments were made to any other government, either in South Africa or internationally,
by Lonmin Plc or its subsidiaries during FY2017.

1
 A refund of $1,795,380 was received in FY2017 in respect of corporate income taxes paid for the years 2010-2012
and 2015
Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd

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