OZ Minerals actively seeks to provide employment and business opportunities to local stakeholders (including indigenous people). This investment is targeted to generate long-term and sustainable benefits for the local region in areas such as business development, education and training, and health and safety. The term local is defined as the areas within the sphere of influence of the mine operation from which employees and suppliers may be drawn. The term indigenous is applicable where the mine is sited on or adjacent to indigenous people’s land or where indigenous people live in communities within the sphere of influence of the mine operation.
Total significant financial assistance received by the Australian Government was $370,568 for tax relief credits and employment incentive payments.
OZ Minerals operations preferentially purchase goods and services locally wherever feasible. Our Prominent Hill operation made significant contributions to local and regional economies through payments to suppliers and contractors during the 2009 reporting period, with over $7,399,211 spent locally, over $8,464,955 regionally and over $63,359,596 within the state or province.
Our investment in the Prominent Hill local community is provided in the chart below. For more information on local employment, local businesses, community investment and training, see labour relations section and social performance section.
The total monetary value of OZ Minerals’ contributions to the Australian economy is provided in the Economic Value Generated and Distributed Table below.
| ECONOMIC VALUE GENERATED AND DISTRIBUTED for year ended 31 December 2009 (for continuing operations) | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Region | Revenue, other income and financing income $m |
Operating expenses $m |
Employee benefit expenses $m |
Payments to providers of capital | Payments to the government | Community investments $m |
Economic value retained $m |
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| Shareholders $m |
Providers of funds $m |
Income taxes paid $m |
Royalties $m |
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| (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | ||
| South Australia(a) | 608.6 | (189.3) | (29.5) | – | (0.8) | – | (8.4) | (0.4) | 380.2 |
| Victoria(a) | 6.2 | (127.8) | (31.3) | – | (92.9) | – | – | (0.8) | (246.6) |
| Total Australia | 614.8 | (317.1) | (60.8) | – | (93.7) | – | (8.4) | (1.2) | 133.6 |
Notes
| (a) | Amounts are divided into the regions identified below based on where the segment is located (i.e. Prominent Hill is located in South Australia). The regions include the following entities:
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| (b) | Revenue includes sales adjusted for discounts, treatment charges, refining and distribution costs, other income and financing income as disclosed in the income statement in the OZ Minerals audited financial statements for the year ended 31 December 2009, as reconciled below
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| (c) | Operating expenses include changes in inventories, raw materials, consumables and other direct costs, contracting and consulting expenses, freight expenses and other expenses as disclosed in the income statement of the OZ Minerals audited financial statements for the year ended 31 December 2009.
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| (d) | Employee benefit expenses of $60.8 million are as per the consolidated income statement of the OZ Minerals audited financial statements for the year ended 31 December 2009. | ||||||||||||||||
| (e) | Payments to shareholders relates to dividend payments. No dividend has been paid in 2009. | ||||||||||||||||
| (f) | Payments to providers of funds relates to financing expenses of $93.7 million as per the income statement in the OZ Minerals audited financial statements for the year ended 31 December 2009. | ||||||||||||||||
| (g) | As stated in the cash flows statement of the audited financial statements for the year ended 2009 OZ Minerals did not pay any income tax for 2009. | ||||||||||||||||
| (h) | Royalty expenses of $8.4 million as per the income statement in the OZ Minerals audited financial statements for the year ended 31 December 2009. | ||||||||||||||||
| (i) | Community investments of $1.2 million includes voluntary contributions, sponsorships, donations, education and training. |
