Kumba media statement
Kumba announces the receipt by its 73.9% owned subsidiary, Sishen Iron Ore Company (“SIOC”) of a tax assessment from the South African Revenue Service (“SARS”) in relation to the tax years 2006 to 2010, for the amount of ZAR5.5 billion (US$345 million). This amount includes ZAR3.7 billion (US$230 million) in interest and penalties.
SIOC has cooperated fully with SARS during the course of the audit, but, supported by its specialist tax and legal advisors, disagrees with SARS’ audit findings. SIOC is therefore in the process of preparing an objection to the assessment, together with an application to the Commissioner of SARS for a suspension of payment until the matter is resolved.
Norman Mbazima, CEO of the Company, said: “As a responsible corporate citizen, Kumba and its subsidiaries believe that all taxes owed under South African tax legislation have been paid and that we comply with all applicable tax laws in all jurisdictions in which we operate.”
“Kumba generates substantial value for all its stakeholders and is fully committed to the transformation of the South African mining industry and to the wider societal and economic benefits that we bring; for example in 2015 alone, a year during which the iron ore price fell sharply, our business contributed R900 million in corporate taxes and mineral royalties, R4.7 billion in salaries and wages, R15.2 billion in local procurement, R6.8 billion of capital reinvested in the business and R174 million in social investment in health, housing, education and small business development.”
