SA Mines and Energy Journal : February-March 2012
15 FEB/MARCH 2012 SA MINES & ENERGY JOURNAL FEATURE How the dollars are spent in South Australia spend for mineral companies is also very high at $16. Community projects account for 30 cents per $100 extracted for mineral companies and $1.00 per $100 for oil and gas companies. The community projects figure excludes indirect community benefits like the expansion of mining towns and the roll-on effect of business for the service sector. Earnings from sponsorship of major events are also excluded from the figures and would post a much larger cost if events like the Santos Tour Down Under - which injected $41.5 million into the State last year -- were included in the calculations. Dividends paid by companies varied widely depending on performance and the position of the stock market in the year reviewed. It is important to note that junior miners usually source much of the extensive start- up capital needed to begin an operation through shareholders, and dividends are a way to reward their investment. SACOME Chief Executive Jason Kuchel said: "The point of the study was to ascertain exactly what happens to every $100 of resources extracted - there is a popular myth that the majority of it profits company shareholders. "This is clearly not even close to the truth. "Excluding capital investment, for every $100 of value extracted from the ground, the resources sector puts back over $89 into the community through their employees, contractors, taxes and community contributions. " A full copy of the report can be viewed at www.sacome.org. au or contact Dayne Eckermann at email@example.com. Totals may not equate to 100 due to rounding * Not included in total; Tax represented as effective tax. # Does not include costs associated with depreciation of assets which total $25 out of $100 extracted from ground. To provide an accurate picture, financials used were based on a full production year, with minimal unplanned operational interruptions. Consequently the 2010/2011 financial year was used in most instances, with the 2009/2010 fiscal year used when more appropriate.