KMG Sustainability Report 2018

In 2018, we approved a new Development Strategy for 2018–2028. The strategy defines the target state of the Company in the medium term as a stable company with an acceptable level of debt and a strict leverage management system.

Financial stability improvement
  • In 2018 we managed to cover losses and significantly improve our financial performance. In 2018, the KMG external debt was reduced, limits on investments were set and the regulations were adopted for project deadlines. We were also able to bring non-core activities into the market environment, which allowed us to reduce duplicate functions.
Businesses should support a precautionary approach to environmental challenges.
Undertake initiatives to promote greater environmental responsibility.
Encourage the development and diffusion of environmentally friendly technologies.
Businesses should work against corruption in all its forms, including extortion and bribery.

The total amount of generated (produced) renewable energy by sources for 2018 was:

678.53 Gcal
Output of geothermal (thermal) energy by heat pumps is
103 572  Gcal
Output of electric power generation solar panels is
240 900 kW*hour
Output of electric power generation by thermal power generators (TPG – Rankine cycle) is

Direct economic value generated and distributed*
Indicator Units 2016 2017 2018
Direct economic value generated (gross revenue) KZT billion 4,035 5,451 7,905
Economic value distributed (gross expenses) KZT billion 3,675 4,926 7,211
Economic value retained (profit) KZT billion 360 525 694
Other taxes and payments (without CIT) KZT billion 781 914 1258
Income tax paid KZT billion 106 113 186
Payments to providers of capital KZT billion 294 275 291
* Data are taken from the KMG Audited Financial Statements for 2018, prepared in accordance with the international financial reporting standards (IFRS). Economic performance indicators are presented in accordance with GRI Standards (201-1).

Social Benefits and Pension Contributions

Indicator Units 2016 2017 2018
Social benefits and pension contributions paid KZT billion 43 52 52

Indirect Economic Impacts

Capital expenditures for 2016–2018
Units 2016 2017 2018
Сapital expenditures KZT billion 554 669 628
The amount of procurement from resident companies of Kazakhstan
Year Total Goods Works & Services
2016 1,602.5 637.5 965
2017 2,257.9 775.1 1,482.8
2018 2,280.8 739.8 1,541

The total amount of procurement of goods, works and services and the share of local content (bn, KZT)
Goods Works & Services
Year Total LC share, % Amount LC share, % Amount LC share, %
2016 1,870 76 721 83 1,149 71
2017 2,553 75 863 79 1,690 73
2018 2,428 79 824 77 1,604 80
The above indicators reflect consolidated data for all subsidiaries of KMG, in which fifty or more percent of voting shares (interests)
are directly or indirectly owned by KMG under the right of ownership or trust management, and which are subjects of the Procurement Rules for goods, works and services of Samruk-Kazyna JSC.