(Incorporated in the Republic of South Africa)
(Registration number: 1967/013038/06)
JSE share code: MND ISIN: ZAE000156550
(Incorporated in England and Wales)
(Registered number: 6209386)
JSE share code: MNP ISIN: GB00B1CRLC47
LSE share code: MNDI
13 June 2017
As part of the dual listed company structure, Mondi Limited and Mondi plc (together “Mondi Group” or “Mondi”) notify both the JSE Limited and the London Stock Exchange of matters required to be disclosed under the Listings Requirements of the JSE Limited and/or the Disclosure Guidance and Transparency Rules and/or the Listing Rules of the United Kingdom Listing Authority. To comply with the requirements in Articles 7 and 9 of the regulatory technical standards of the Transparency Directive (2004/109/EC), this announcement falls within the ‘Payments to governments’ classification.
Regulatory Report on Payments to Governments in respect of Logging Industries for the Year 2016
The report of payments to governments made by Mondi plc and its subsidiary undertakings for the year ended 31 December 2016 has been published in accordance with the UK’s Reports on Payments to Governments Regulations 2014 (as amended in December 2015). This regulation implements the two EU Directives in the UK, mandating annual reports by companies in the extractives and logging industries of their payments to governments in countries in which they operate.
To read details of Mondi’s payments to governments go to www.mondigroup.com.
Basis of preparation
The application of the Regulation for Mondi relates to our logging activities and specifically to the disclosure of payments to governments relating to the logging of primary forests.
We have used the Food and Agriculture Organisation of the United Nations definition of ‘primary forest’ being:
‘Naturally regenerated forest of native species, where there are no clearly visible indications of human activities and the ecological processes are not significantly disturbed’.
Also, for the purposes of this report, the original ‘IFL 2000’ (Greenpeace, World Resources Institute (WRI) and Transparent World) inventory of intact forests has been used as the base for reporting on the harvesting of primary forests in the Komi Republic, Russia (‘Komi’).
Only a portion of our Syktyvkar logging operations in Komi fall within the above definition of primary forests. Our operations in South Africa comprise plantation forests that are not associated with any primary forests and therefore are excluded from the report.
Our logging operations in Komi do not result in deforestation. In terms of the Russian Forestry Code and Mondi’s sustainable development policies all logged areas are naturally regenerated with supplementary plantings of spruce and pine where required to make up full populations of young trees for the next sustainable forest cycle. During logging operations protected areas, High Conservation Areas (HCV) areas and sensitive biotopes, comprising approximately 25% of the area, are naturally set aside for conservation.
Payments made in currencies other than the euro (Mondi Group’s reporting currency) are translated for this report using the average exchange rate during the financial year to which it relates.
For further information regarding the Mondi Group’s approach to sustainably managing our forests, please refer to our Sustainable development report 2016 which can be found at www.mondigroup.com/sd16 and our sustainable forestry policy, one of our issue specific SD policies at https://www.mondigroup.com/en/sustainability/governance-of-sustainability.
|Country||Production entitlement||Taxes||Royalties||Dividends||Bonuses||Licence fees, etc||Infrastructure improvements||Total|
|Entity||Production entitlement||Taxes||Royalties||Dividends||Bonuses||Licence fees, etc||Infrastructure improvements||Total|
|OJSC Mondi Syktyvkar||Nil||€144,000||Nil||Nil||Nil||€925,000||Nil||€1,069,000|
The report has been submitted to the National Storage Mechanism and will shortly be available for inspection at: http://www.morningstar.co.uk/uk/NSM.
Group Head of Communications
Tel: +27 (0)31 451 2111 or +27 (0)83 627 0292
E-mail: [email protected]
We are Mondi: In touch every day
Mondi is an international packaging and paper Group, employing around 25,000 people across more than 30 countries. Our key operations are located in central Europe, Russia, North America and South Africa. In 2016, Mondi had revenues of €6.7 billion and a return on capital employed of 20.3%.
We are fully integrated across the packaging and paper value chain - from managing forests and producing pulp, paper and compound plastics, to developing effective and innovative industrial and consumer packaging solutions. With over 100 products customised into more than 100,000 solutions, we offer more than you may expect. Leading brands around the world rely on our innovative technologies and products across a variety of industries such as agriculture; automotive; building and construction; chemicals and dangerous goods; food and beverages; graphic and photographic; home and personal care; medical and pharmaceutical; office and professional printing; packaging and paper converting; pet care; retail and e-commerce; and shipping and transport.
We believe sustainable development makes good business sense. It's integral to our responsible and profitable growth, and embedded in everything we do, every day. We continue to look for ways to do more with less, promote the responsible management of ecosystems, develop and inspire our people, and enhance the value that our sustainable product solutions create.
Mondi has a dual listed company structure, with a primary listing on the JSE Limited for Mondi Limited under the ticker code MND and a premium listing on the London Stock Exchange for Mondi plc, under the ticker code MNDI. We have been included in the FTSE4Good Index Series since 2008 and the JSE's Socially Responsible Investment (SRI) Index since 2007.
Sponsor in South Africa: UBS South Africa (Pty) Ltd