Economic value added
Taxes and royalties
The taxes and royalties we pay are a significant element of our contribution to socio-economic development. We also have a responsibility to our shareholders to put in place an efficient capital structure that provides an attractive return on investment. As well as taxes, we pay mineral royalties to governments and sometimes have profit-sharing or other financial agreements with local communities.
Infrastructure development
Our operations often develop and maintain infrastructure such as roads, water supply and electricity that benefit local communities. Some infrastructure projects go beyond meeting our own operational needs and are funded through our corporate social investment (CSI) programme for the exclusive benefit of local citizens.
For example, as part of Xstrata Nickel’s work to develop sustainable initiatives near our Falcondo operations in the Dominican Republic, we constructed two rural aqueducts. The aqueducts help resolve water supply problems facing more than 820 families.
Job creation
Our projects and operations directly employ more than 70,000 employees and contractors. This is particularly valuable in remote and less developed regions where there is little alternative work and many people have only basic work skills and qualifications. We recognise the importance of recruiting local people and giving them the skills to help improve their employment prospects and overall livelihoods.
