By TesfaNews,
Nevsun Resources Ltd. have released its fifth Corporate Social Responsibility (CSR) report earlier this week to demonstrate the company’s commitment to providing transparent disclosure of its sustainable economic, social, and environmental practices and performance.
The report highlights that the year 2015 was a success at which Nevsun delivers many of its sustainability milestones and achievements. Its safety record, for instance, continues to exceed North American industrial safety metrics, which is by itself a remarkable achievement given the country’s first major industrial operation.
Another achievement among the many stated on the report was the company’s considerable economic contribution by providing employment opportunities, training, and wages.
Up until 2015, the Bisha mine was the only modern mine in Eritrea. Since commercial operation began in 2010, the mine has generated over $2.4 billion in economic value, out of which over $1.2 billion was direct payments into the Eritrean economy through corporate income taxes, royalties, employment taxes, and distributions to ENAMCO.
These economic benefits continue to generate numerous domestic spin-off effects. The mine already provides a significant source of income for local businesses through the mining supply chain.
Naturally, in an economy such as Eritrea’s, much of the mine’s supplies are ultimately sourced from outside of the country and that reduces the value of the spin-off effects.
In 2015, for instance, Nevsun spent a total of $283 million on fuel, heavy mobile equipment, construction materials, transportation and shipping, and other operating materials, goods and services from local and international vendors (compared with $273 million in 2014).
Of these expenditures, approximately $95 million, or 34%, was provided to local vendors that includes all government and private businesses that provide supplies and services to the Bisha Mine.
Nevsun’s annual Corporate Social Responsibility reports can be found here.
Payments to governments and government-owned entities from 2011 to 2015:
| Payments to Government (Forms of Taxation) | Total(000) | 2015 | 2014 | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|
| Income Taxes | $416,843 | $21,790 | $88,983 | $60,484 | $209,586 | $36,000 |
| Royalties | 115,379 | 17,620 | 30,331 | 14,774 | 31,462 | 21,192 |
| Payroll taxes | 29,100 | 8,199 | 6,631 | 6,370 | 5,159 | 2,741 |
| Witholding taxes, customs & duties (1) | 21,553 | 6,347 | 4,260 | 5,007 | 3,236 | 2,703 |
| $528,919 | $53,956 | $130,205 | $86,635 | $249,443 | $62,636 | |
| Payments to ENAMCO | ||||||
| Distributions (2) | 163,750 | 19,000 | 76,750 | — | 68,000 | — |
| Return of capital (2) | 81,409 | — | — | — | — | $81,409 |
| $245,145 | $19,000 | $76,750 | — | $68,000 | $81,409 | |
| Total Payments to Government | $828,034 | $72,956 | $206,955 | $86,635 | $317,443 | $144,045 |
