Williamson Diamond Mine, the subsidiary of Petra Diamonds has spent 45.5 million US dollars (97.83bn/-) in the 2015 financial year, representing 53 per cent to procure various goods from the local and regional suppliers.
According to Petra Diamonds Sustainability Report 2015, the mining operations in Tanzania and South Africa used the approach of procuring from domestic suppliers to stimulate and benefit the local economy through procurement as much as possible.
Also during the year under review, the mining firm paid to the government over 5.81bn/- as taxes for the improvement of various social economic activities.
Petra has a strong commitment to local economic development and to having positive impact on the social,economic and institutional development of its host communities.
“We are committed to full transparency with regards to our payments to governments, both in terms of taxes and royalties, as well as our other areas of significant social expenditure,” stated the report.
Petra supports the principles of the Extractive Industries Transparency Initiative (EITI) and publish what you pay given that publishing details of Petra’s tax payments to governments can increase confidence and help improve community support for its activities.
It should be noted that Petra’s operations are currently subject to varying levels of tax shields, due to the significant level of expansion capital being invested by the Company at each mining operation.
During 2015 financial year, the group continued to ramp up the capital expenditure at its operations which, when coupled with reduced revenue for the year, impacted the net taxes paid to government.
The generally accepted ‘multiplier effect’ in South Africa and Tanzania is 10 times, which means that whilst Petra directly employs 4,428 permanent employees and 3,843 contractors, significantly greater number of people (about 83,000) are currently dependent on our operations.
According to Petra Diamonds Sustainability Report 2015, the mining operations in Tanzania and South Africa used the approach of procuring from domestic suppliers to stimulate and benefit the local economy through procurement as much as possible.
Also during the year under review, the mining firm paid to the government over 5.81bn/- as taxes for the improvement of various social economic activities.
Petra has a strong commitment to local economic development and to having positive impact on the social,economic and institutional development of its host communities.
“We are committed to full transparency with regards to our payments to governments, both in terms of taxes and royalties, as well as our other areas of significant social expenditure,” stated the report.
Petra supports the principles of the Extractive Industries Transparency Initiative (EITI) and publish what you pay given that publishing details of Petra’s tax payments to governments can increase confidence and help improve community support for its activities.
It should be noted that Petra’s operations are currently subject to varying levels of tax shields, due to the significant level of expansion capital being invested by the Company at each mining operation.
During 2015 financial year, the group continued to ramp up the capital expenditure at its operations which, when coupled with reduced revenue for the year, impacted the net taxes paid to government.
The generally accepted ‘multiplier effect’ in South Africa and Tanzania is 10 times, which means that whilst Petra directly employs 4,428 permanent employees and 3,843 contractors, significantly greater number of people (about 83,000) are currently dependent on our operations.
Source: Daily News, reported from Dar es Salaam, Tanzania
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