JSC National Atomic Co. Kazatomprom

Major Shareholding Notification • Jun 28, 2022

National Storage Mechanism | Additional information

RNS Number : 4251Q

JSC National Atomic Co. Kazatomprom

28 June 2022

Report on payments to government bodies

made by NAC Kazatomprom JSC in 2021

1.   Introduction

This report is a summary of payments made to government bodies by National Atomic Company Kazatomprom JSC ("the Company" or "Kazatomprom") and its controlled entities in 2021. The Report has been developed in accordance with the 2014 United Kingdom (UK) Rules for reporting on payments to governments (as amended in December 2015). These Rules are based upon the provisions of Chapter 10 of the Act "On reports on payments to governments" of the Reporting Guidelines dated 2013, as amended. According to these Rules, oil, gas, mining and forestry companies registered in the UK must disclose annual information on payments to governments by country and by project.

This disclosure obligation is determined based on the European Union country where the issuer's shares were initially offered publicly, or where the issuer first applied for admission of its securities for trading in a regulated market. It therefore applies to Kazatomprom as a mining company whose securities are traded on the London Stock Exchange, in accordance with the rules of the Financial Conduct Authority in the UK.

2.   General Information

Kazatomprom (as a joint-stock company) was established in 1997 as the Republic of Kazakhstan's national operator for the export and import of uranium and its compounds, nuclear fuel for nuclear power plants, special equipment and technologies. The Company is the world's largest producer of natural uranium with priority access to one of the world's largest resource bases. 

The Kazatomprom group's main activity is uranium mining and the sale of uranium products, with mining activities occurring exclusively within the Republic of Kazakhstan.

As of December 31, 2021, the Sovereign Wealth Fund Samruk-Kazyna JSC owned 75% of the total outstanding shares of the Company, while 25% was in free circulation on the Astana International Exchange and the London Stock Exchange.

Kazatomprom, realizing that its core activities are directly related to the use of natural resources, recognizes the need for socially responsible extraction of these resources and environmental protection.

3.   Reporting companies

This report includes information on payments to government made by the Company and by subsidiaries comprising the group of Kazatomprom, and by the joint operations, for activities directly or indirectly related to subsoil use.

4.   Reporting period and report coverage

This is the Company's report on payments to governments for 2021, which has been prepared in accordance with applicable laws and best practices of disclosure. The report considers the activities of the Company and its subsidiaries engaged in the extraction and processing of uranium.

Reporting system allows reflecting information on payments to governments and is intended to increase transparency in the field of payments to governments, increasing responsibility of mining companies in the field of revenues from uranium mining.

The reporting period is January 01, 2021 through December 31, 2021.

5.   Government/State

The government/state includes local executive bodies (akimats - mayor's offices), bodies of the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan, as well as other government bodies.

6.   Companies

The companies whose data on payments is contained in this report are the following subsidiaries and joint operations within Kazatomprom's group operating in the territory of Kazakhstan:

·    NAC Kazatomprom JSC

·    JV Inkai LLP

·    Karatau LLP

·    JV Akbastau JSC

·    Ortalyk LLP

·    Appak LLP

·    Kazatomprom-SaUran LLP

·    RU-6 LLP

·    Baiken-U LLP

·    Khorassan-U LLP

7.   Payments categories

This report was compiled on the basis of the amounts of taxes and payments for 2021 paid to the budget (in cash) of Kazakhstan, in millions of Tenge. The types of payments are categorized as follows:

Corporate Income Tax (CIT).

Corporate income tax, except for corporate income tax withheld from the income of non-residents.

Mineral Extraction Tax (MET).

The mineral extraction tax is a compulsory payment made by subsoil users separately for each type of mineral raw material extracted in the Republic of Kazakhstan.

Subscription bonus.

The subscription bonus is paid by the subsoil user each time a new subsoil use right is obtained and a contract is signed for exploration, production, or combined exploration and production of mineral resources, as well as when the contract area is expanded.

Payments for infrastructure improvement

Payments for infrastructure improvement are expenditures on the socio-economic development of the region and the development of infrastructure in the areas impacted by Kazatomprom's operations, according to the terms of the contracts for subsoil use (including payments to local executive bodies)

Other

Other taxes constitute payments of historical costs, social tax, and taxes on property, land and transport and exclude value added tax and excise tax, which do not affect the amount of profit.

8.   Currency

This report is presented in Kazakhstani Tenge, which is the functional currency of the Company. Transactions in foreign currencies are recorded in the functional currency at the prevailing exchange rate on the transaction date. Monetary assets and liabilities denominated in foreign currencies are converted to the functional currency at exchange rates effective at the reporting date.

9.   Contact details

This report, along with additional information on the Company's activities, can be found on the corporate website at www.kazatomprom.kz.  

Questions or comments related to the information provided in this report should be sent to:  17/12 Syganak Street, Nur-Sultan, the Republic of Kazakhstan, Z05T1X3; Теl. +7 7172 45 81 01; [email protected].

1.   Report by countries in 2021 (million Tenge)

	Type of payment
State (Country)	CIT	MET	Bonuses	Infrastructure improvement	Other	Total
Kazakhstan	104,421	22,255	87	1,180	5,374	133,317

2.   Report by state body in 2021 (million Tenge)

	Type of payment
State body	CIT	MET	Bonuses	Infrastructure improvement	Other	Total
State (including akimats)				1,180		1,180
State Revenue Department	104,421	22,255	87		5,374	132,137
TOTAL	104,421	22,255	87	1,180	5,374	133,317

3.   Report by company in 2021 (million Tenge)

	Type of payment
Company	CIT	MET	Bonuses	Infrastructure improvement	Other		Total
NAC Kazatomprom JSC	32,032	773	87	43	1,004	33,939
JV Inkai LLP	22,178	3,514		64	1,129	26,885
Karatau LLP	13,130	1,480		59	402	15,071
JV Akbastau JSC	6,589	1,557		213	155	8,514
MC Ortalyk LLP	4,856	3,028		43	652	8,579
Appak LLP	4,742	1,983		43	396	7,164
Kazatomprom-SaUran LLP	2,984	2,907		429	713	7,033
RU-6 LLP	2,442	2,199		113	395	5,149
Baiken-U LLP	6,669	2,675		44	414	9,802
Khorassan-U LLP	8,799	2,139		129	114	11,181
TOTAL	104,421	22,255	87	1,180	5,374	133,317

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