Contributions to
local economies
OZ Minerals actively seeks to provide employment and business opportunities for people from local communities, including indigenous people. This investment aims to generate long-term and sustainable benefits for the local region. The term local is defined as the areas close to the operation from which employees and suppliers may be drawn.
Total significant financial assistance received from the Australian Government was $443,335 for tax relief credits and $73,682 for 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 2011 reporting period. A total of $113.7 million was spent on goods and services in South Australia in 2011, with approximately $11.8 million spent locally and approximately $11.7 million spent regionally.
The breakdown of 2011 expenditure by origin is provided in the chart below. For more information on local employment, local businesses, community investment and training, see the ‘Our people’ section of this report.
ECONOMIC VALUE GENERATED AND DISTRIBUTED for year ended 31 December 2011 (for continuing operations)
All amounts in AUD millions
| Region |
Revenue, other income and financing income A$m (b) |
Operating expenses A$m (c) |
Employee benefit expenses A$m (d) |
Payments to providers of capital |
Payments to the government | Community investments A$m (i) |
Economic value retained A$m |
||
|---|---|---|---|---|---|---|---|---|---|
| Shareholders A$m (e) |
Providers of funds A$m (f) |
Income taxes paid A$m (g) |
Royalties A$m (h) |
||||||
| South Australia(a) |
1,116.0 | (391.4) | (49.7) | – | (1.1) | – | (16.5) | (1.7) | 655.6 |
| Victoria(a) | 37.2 | (108.8) | (16.9) | (714.8) | (1.8) | (0.8) | – | (0.1) | (806.0) |
| Total Australia | 1,153.2 | (500.2) | (66.6) | (714.8) | (2.9) | (0.8) | (16.5) | (1.8) | (150.4) |
| Cambodia | – | (6.3) | – | – | – | – | – | (0.1) | (6.4) |
| Other | 1.0 | (0.5) | – | – | – | – | – | – | 0.5 |
| Total Overseas | 1.0 | (6.8) | – | – | – | – | – | (0.1) | (5.9) |
| Total OZ Minerals |
1,154.2 | (507.0) | (66.6) | (714.8) | (2.9) | (0.8) | (16.5) | (1.9) | (156.3) |
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:
|
||||||||||||||||||
| (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 2011, as reconciled below:
|
||||||||||||||||||
| (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 2011.
|
||||||||||||||||||
| (d) | Employee benefit expenses of $66.6 million are as per the consolidated income statement of the OZ Minerals audited financial statements for the year ended 31 December 2011. | ||||||||||||||||||
| (e) | Payments to shareholders relates to dividend payments of $226.7 million, capital return of $388.6 million and share buyback of $99.9 million. | ||||||||||||||||||
| (f) | Payments to providers of funds relates to financing expenses of $2.9 million as per the income statement in the OZ Minerals audited financial statements for the year ended 31 December 2011. | ||||||||||||||||||
| (g) | OZ Minerals recouped tax losses and paid franking tax deficit of $0.8 million in 2011. | ||||||||||||||||||
| (h) | Royalty expenses of $16.5 million as per the income statement in the OZ Minerals audited financial statements for the year ended 31 December 2011. | ||||||||||||||||||
| (i) | Community investments of $1.9 million include education and training, voluntary contributions, sponsorships and donations. |
