London, United Kingdom, 28 June 2019 — Nord Gold SE (Nordgold or the Company), the internationally diversified gold producer, has today published its Report on Payments to Governments for 2018.
The Report has been prepared in accordance with the requirements of the Disclosure and Transparency Rules Instrument 2014, issued by the Financial Conduct Authority.
In the year ended 31 December 2018, Nordgold, which has operations in Russia, Burkina Faso, Guinea and Kazakhstan, made a total economic contribution (defined as capital investments, salaries, taxes, royalties, dividends and other community investments) of US$724.4 million, an increase of almost 7% on 2017 (2017: US$674.9 million).
The increase in overall contribution was mainly driven by higher asset development and maintenance expenditures (capex) (up 33% year-on-year to US$367.7 million in 2018) and growth in the total amount of salaries and wages paid to workers during the year (up to US$210.7 million in 2018 vs. US$205.0 million in 2017), primarily due to higher salaries. These payments represent a highly important part of the Company’s economic contribution to the local economies.
In 2018, Nordgold paid US$112.2 million in the form of taxes, dividends and payments for infrastructure improvements to the governments of countries in which it operates. Despite lower production volumes in 2018, the Company maintained the same level of taxes paid, confirming the important role the Company plays in the local economies. Nordgold is a significant taxpayer in all its markets, and is amongst the largest corporate taxpayers in both Burkina Faso and Guinea.
We are proud to maintain our role as major contributor to the economies of our host nations. This contribution has continued to grow, despite volatility in gold price and overall global economic environment. We are deeply committed to the local communities where we operate our mines. As a significant employer and taxpayer in those markets, and taking into account our extensive growth pipeline, we will continue to invest across our business for many years to come. Nikolai ZelenskiChief Executive Officer of Nordgold
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