OREANDA-NEWS. November 16, 2012. Polymetal International plc (LSE: POLY) (together with its subsidiaries, including JSC “Polymetal” – “Polymetal”, the “Company”, or the “Group”) announces that the Kostanay regional court in Kazakhstan issued a ruling supporting the tax authorities and requiring the Group to pay approximately USD19 million in additional taxes, reported the press-centre of Polymetal.

On November 5th, 2012 the Kostanay regional court (Kazakhstan) issued a ruling on the tax dispute between JSC Varvarinskoye, a subsidiary of the Group, and the Kazakh tax authorities. Additional corporate profit tax of approximately USD14 million has been charged to JSC Varvarinskoye.

An additional fine will be charged at the maximum amount of 50% of the initial amount which will increase the total amount to be paid to approximately USD 19 million.

The dispute reflected varying opinions of the Group and the tax authorities on tax deductibility of non-cash foreign exchange losses and of transportation, treatment and refining charges levied by copper concentrate off-takers. Polymetal will review its options for further legal redress in due course.

No provision had been set aside in the financial statements for this settlement as of June 30, 2012. Full amount of approximately USD 19 million will be reflected as an expense in the financial statements for FY2012.