Nickel Mines (ASX:NIC) project receives Indonesian tax relief

Company News

by Melissa Darmawan

A Nickel Mines' (ASX:NIC) project in Indonesia has received corporate tax relief from the Jakarta government. The tax concessions include waiving income tax for a decade, followed by a 50 per cent discount for the following two years.

The Angel Nickel Rotary kiln-electric furnace (RKEF) project’s operating entity “has been granted material corporate tax relief for its RKEF project that is approaching maiden commissioning”.

Angel Nickel is an Indonesian domiciled PMA company. PMA means a Perusahaan Penanaman Modal Asing, an Indonesian foreign investment company in which foreign share ownership of up to 100 per cent is allowed.

This entity has an RKEF project that comprises 4 RKEF lines and a 380 megawatts power plant, in which the Nickel Mines holds an 80 per cent interest via Angel Capital Private Limited, a Singaporean domiciled company.

Nickel’s existing Hengjaya Nickel and Ranger Nickel RKEF projects (both 2-line RKEF projects) are currently benefiting from 7-year, 100 per cent corporate tax relief.

The increased tenor of the tax free period of 10 years applicable to Angel Nickel is attributed to its materially larger scale and “planned investment value”.

It should be noted that these concessions may be revoked, amended or adjusted, if any of six conditions are not met.

Shares in Nickel Mines (ASX:NIC) are trading 1.1 per cent higher at $1.45.

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