Tanzania: Mining Firm Pays Govt $5.8 Million in Taxes

Posted on :Wednesday , 28th December 2016

Petra Diamonds has paid 5.8 million US dollars (about 12bn/-) to Tanzania in various taxes making the country the highest paid in nations where the firm operates.

The diamond firm, registered in London Stock Exchange, made a total payment of 8.9 million US dollars (18bn/-), where Tanzania payments account for 66 per cent, South Africa 32 per cent and Netherlands 2 per cent.

The company has operations in six countries but main activities are in South Africa with four mines and Tanzania a single open pit mine.

Out of the amount the country received, royalty share was 68 per cent, other payments 11 per cent, mining and other license fees 9 per cent, infrastructure improvement 8 per cent and corporate taxes 4 per cent.

Tanzania received 3.95 million US dollars (8bn/-) as royalty which was double the amount South Africa was paid of 1.47 million US dollars (3bn/-) despite of having four mines. South Africa is Petra strong hold. In total, South Africa received 2.9 million US dollars.

During Petra's financial ending June 2016, Pretoria receives neither corporate taxes nor any mining license fees. On other hand, Netherlands was paid 144, 000 US dollars (300m/-) being for corporate taxes.

The Petra's government payment report aims to satisfy the regulations as well as the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority in the UK. Under the regulations, Petra is required to report payments made which individually or collectively exceed 86,000 Great Britain Pound or 100,000 Euro within a financial year.

The company has interests in five producing operations, four mines in South Africa--Finsch, Cullinan, Koffiefontein and Kimberley Operations and in Tanzania, Williamson.

It also maintains an exploration programme in Botswana. Petra has a core objective to steadily increase annual production to ca. 5.3 million carats by 2019. The Group has a significant resource base in excess of 300 million carats.

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