21 December 2022
Pensana Plc
("Pensana" or the
"Company")
Payments to
Government for FY 2022
Pensana Plc (LSE: PRE) (“Pensana” or “the Company”) publishes
the Company’s Payments to Governments Report for the year ended
30 June 2022 (“the Year” or “FY2022”)
(the “Report”).
Basis of preparation
This Report, which provides an overview of the payments to
governments made by Pensana and its subsidiaries, is required under
the United Kingdom’s (“UK”) Report on Payments to Governments
Regulations 2014 and its amendment in December 2015 (“the Regulations”). This Report is
also intended to satisfy the requirements of the Disclosure and
Transparency Rules of the Financial Conduct Authority in the
UK.
This report is also available on the Company’s website at:
www.pensana.co.uk.
Activities
Payments made by Pensana to governments arising from activities
involving the exploration, prospection, discovery, development and
extraction of minerals (extractive activities) across its projects
are to be disclosed in this report.
Summary of Payments
(US$)1
|
|
|
|
|
|
|
Country |
Corporate taxes |
Mining & other licence
fees |
Royalties |
Infrastructure
improvements |
Other |
Total |
Australia |
- |
- |
- |
- |
- |
- |
Angola2 |
- |
1,514 |
- |
- |
- |
1,514 |
Tanzania |
- |
- |
- |
- |
- |
- |
UK |
- |
- |
- |
- |
- |
- |
1 Payments are shown in US$ equivalent amounts for
the financial year ending 30 June
2022 using the average FX rate for the year
2 Payments shown relate to the Longonjo Project
only
Government definition
Government includes any national, regional or local authority of
a country, and includes a department, agency or entity that is a
subsidiary of a government.
Payments
Payments to governments are required to be reported in the
following categories:
These are any taxes paid by Pensana on its income and profits in
accordance with legislation enacted in the applicable jurisdiction.
Payments are reported net of refunds. Value added tax, personal
income taxes, social taxes, property taxes are excluded.
Royalties are not yet applicable as still in
exploration/development.
These are any fees and other sums paid as consideration for
acquiring a licence for gaining access to an area where extractive
activities are performed. Administrative government fees that are
not specifically related to the extractive sector are excluded.
- Infrastructure improvements
Payments in kind in the form of infrastructure expenditure other
than in circumstances where the infrastructure is expected to be
primarily dedicated to operational activities throughout its useful
life. The Regulations do not require reporting social or community
payments, such as payments to build a hospital or a school.
Other types of payments
Other types of payments that are required to be disclosed in
accordance with the Regulations but are not relevant to Pensana’s
operations are the following:
- Production entitlements
- Dividends
Including dividends paid to a government in lieu of production
entitlements or royalties. Dividends paid to a government as an
ordinary shareholder on the same terms as to other ordinary
shareholders and not paid in lieu of production entitlements or
royalties are excluded.
- Signature, discovery and production bonuses
Payments are reported on a cash basis. No in-kind payments were
made during year ended 30 June
2022.
Materiality Level
Payments included in the Report are amounts paid, whether in
money or in kind, for relevant activities. In line with the
Regulations, where a payment or a series of related payments have
not exceeded £86,000 they have not been disclosed.
Payments per government
Total payments to governments under the Regulations amounted to
US$1,514 in FY 2022 (FY 2021:
US$32,176).
Authorised by the Board of Pensana
Plc
- ENDS –
For further information, please
contact:
Shareholder/analyst enquiries:
Pensana
Plc
Paul Atherley,
Chairman
IR@pensana.co.uk
Tim George, Chief Executive
Officer
Rob Kaplan, Chief Financial
Officer
George Zacharias, Group Company
Secretary
Media enquiries:
FGS Global:
Gordon Simpson / Richard
Crowley
Pensana-LON@fgsglobal.com
About Pensana Plc
The electrification of motive power is the most important part
of the energy transition if we are to tackle climate change and one
of the biggest energy transitions in history. Magnet metal rare
earths are central to that transition, forming a critical part of
the technology for efficient electric vehicle motors and offshore
wind turbines.
Pensana plans to establish its Saltend processing hub as an
independent and sustainable supplier of the key rare earth magnet
metal oxides to a market which is currently dominated by
China.
The US$195 million Saltend
facility is being designed to produce circa 12,500 tonnes per annum
of rare earth products, of which 4,500 tonnes will be neodymium and
praseodymium oxide (NdPrO), representing over 5% of the world
market in 2025.
Pensana’s plug-and-play facility is located within the
world-class Saltend Chemicals Park, a cluster of leading chemicals
and renewable energy businesses in the Humber Freeport and will
create over 500 jobs during construction and over 125 direct jobs
once in production.
Powered by low-carbon offshore wind, it will be the first major
separation facility to be established in over a decade and will
become one of the few major producers located outside China.
Feedstock will be shipped as a clean, high purity mixed rare
earth sulphate (MRES) from the Company’s Longonjo low-impact
operations in Angola. The mine's
state-of-the-art concentrator and proprietary MRES processing plant
are designed by Wood to the highest international standards.
The operations will be powered by renewable energy from
hydroelectric power and connected to the Port of Lobito by the
recently upgraded Benguela railway line.
Pensana believes that provenance of critical rare earth
materials supply, life cycle analysis and GHG Scope 1, 2 and 3
emissions will all become significant factors in supply chains for
major customers.
The Company intends to offer customers an independently and
sustainably sourced supply of the metal oxides and carbonates of
increasing importance to a range of applications central to
addressing the energy transition.
Pensana is also aiming to establish Saltend as an attractive
alternative to mining houses that may otherwise be limited to
selling their products to China,
having designed the facility to be easily adapted to cater for a
range of rare earth feedstocks.
www.pensana.co.uk