Economic impacts

Albert Kokata is an occupational nurse at PMR. He was nominated and featured as a 'hero' in the values project for work he did in the community over and above his normal work.

Albert Kokata is an occupational nurse at PMR. He was nominated and featured as a 'hero' in the values project for work he did in the community over and above his normal work.

ADDING VALUE

Through the mining of a natural resource we are able to refine and sell products society needs for many applications. In doing so we generate economic value for many stakeholders, most notably:

  • shareholders through the payment of dividends and growth in share price;
  • government through the taxes and royalties we pay;
  • employees through the salaries we pay;
  • suppliers and contractors as we pay for goods and services rendered; and
  • communities through local employment, job creation through SMME development and our corporate social investment projects.

These stakeholders in turn can use the opportunities created to add more value.

ECONOMIC IMPACTS

DIRECT VALUE ADDED TO SOUTH AFRICA

Total turnover in 2008 was R51,118 million, distributed as follows:      
Employees      
Total payroll and benefits paid in South Africa, R millions 2008 2007 2006
Gauteng 707 663 445
Limpopo 4,587 3,784 2,980
North West 4,723 3,863 2,993
Mpumalanga 2 – –
Total 10,018 8,311 6,418
Wages 8,994 7,414 5,840
Pension 697 585 438
Other benefits 134 101 96
Share-based payments 188 200 –
Redundancy payments 5 10 44
Total 10,018 8,311 6,418
Remunerations refer to current payments and exclude future commitments.      
Public sector      
Taxes paid of all types in South Africa, R millions      
South African normal taxation 1,384 4,976 728
Secondary tax on companies 191 1,645 416
Royalties 76 197 212
Total 1,651 6,818 1,355
Apart from reimbursement of its payment to the skills development levy, the Group received no grants, tax relief or other types of benefits that did not represent a transaction of goods and services.      
Donations in South Africa, R millions      
Community group      
Cash 80 52 25
In-kind – – 4
Civil society groups      
Cash 10 26 16
In-kind – – –
Other groups      
Cash 51 48 9
In-kind – – –
Total 141 126 54
Non-core infrastructure development1, R millions 21 35 4
1. This is infrastructure built outside main business activities, such as schools or hospitals for employees and their families.      
Private sector      
Suppliers      
Cost of goods, materials and services purchased, R millions      
Total 24,549 23,100 18,900
Of which, sourced from South Africa 23,933 22,520 18,711
Note: 100% of contracts were paid in accordance with agreed terms.      
       
Customers      
Anglo Platinum is primarily a PGM producer operating in South Africa. All other metals produced are by-products of the PGM process. The following analyses of the Group's revenue are based on the end-use of metals sold, rather than the location of primary customers.      
Gross sales revenue analysis, R millions      
Platinum 28,636 23,412 21,871
Palladium 4,258 3,858 3,347
Rhodium 13,091 11,325 8,576
Nickel 2,615 4,716 3,462
Other 2,518 3,650 2,099
Total 51,118 46,961 39,355
North America 3,588 3,333 2,918
Asia 23,207 16,940 15,238
Europe 14,211 14,429 10,737
Africa 10,031 12,207 10,403
Other 81 52 59
Total 51,118 46,961 39,355
         
The following data represents the Group's output as a proportion of demand, as defined by Johnson Matthey as 'sales of new metal'.
Market share of global demand, %      
Platinum 37 37 40
Palladium 19 16 18
Rhodium 39 41 41
Providers of capital      
Distributions to providers of capital, R millions      
Interest on short-term debt 1,391 402 240
Dividends 13,816 15,904 4,826
Total 15,207 16,307 5,066
Increase/(decrease) in accumulated profit 645 (3,601) 7,209

Gross sales Total value distributed (%)by metal (%)

PAYMENTS TO GOVERNMENT

The impact of our operations is a complex mix of environmental, social and economic factors, the relationships we have with governments and the payments made to those governments by way of taxes. The taxes we pay as a company, as well as those we collect from employees on behalf of government, and those of suppliers that are dependent on our presence, are important contributions to the creation of wealth and wellbeing. Social benefits arise where these enhanced revenues are used to provide better social infrastructure and public services.

Over ZAR 1,651 million in taxes was paid directly to South African government because of our operations in 2008. This included company taxes, royalties, transaction and other taxes. In addition, we indirectly contributed ZAR 1,177 millions in employee taxes, which we collected on behalf of governments and paid over to them. We believe that this wider tax footprint is a valid reflection of the tax contribution that results from our activities.

No financial assistance is received from government.