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Report on Payments to Governments for the year ended 30 September 2018
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
1 April 2019
Report on Payments to Governments for the year ended 30 September 2018
Introduction
This report sets out payments made by Lonmin Plc and its subsidiaries to governments during the
financial year ended 30 September 2018 (FY2018). 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 FY2018 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 FY2018 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 FY2018.
- 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
FY2018.
- Bonuses. This category consists of signature, discovery and production bonuses paid to a
government. There were no reportable bonus payments made during FY2018.
- 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 FY2018.
- 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 2018 Sustainable Development Report, available on the Company’s website at
www.lonmin.com). There were no reportable payments for infrastructure improvements during
FY2018.
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 2018
Paying entity Taxes Royalties TOTAL
USD’000 USD’000 USD’000
Payments to the government of the United Kingdom:
Lonmin Plc $7,297 $7,297
Payments to the government of South Africa:
Messina Platinum Mines Limited $636 $636
Akanani Mining (Pty) Ltd $36 $36
Western Platinum Ltd $5,468 $5,468
Eastern Platinum Ltd $1,392 $1,392
Pandora Joint Venture $197 $197
Total payments to the government of South Africa $672 $7,057 $7,729
Payments to the government of Kenya:
Afriore Kenya Limited $1,757 $1,757
Total payments to governments $9,726 $7,057 $16,783
No reportable payments were made to any other government, either in South Africa or internationally,
by Lonmin Plc or its subsidiaries during FY2018.
END
Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd
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