Despite commodity downturn Newmont pays higher royalty

Despite the current commodity price downturn, gold and copper giant PT Newmon Nusa Tenggara, a subsidiary of US-based Newmont Mining Corp, said it has made higher royalty payment to the government last year.

PT Newmont President Director Rahmat Makassau was quoted by reports as saying Wednesday that the company paid Rp 1.4 trillion of royalty to the government last year, a sharp rise compared to Rp 222 billion paid in 2014.

The increase in royalty payment by PT Newmont, which operates the Batu Hijau mine in West Nusa Tenggara Province, was attributed to higher royalty tariff and because the company operated at maximum capacity last year, explained Rahmat.

He added that the company has provided a total of Rp 34.7 trillion in revenue including tax, non-tax and royalty for the government since it started operation until end of 2015.

Rahmat said that the company, which employs 7,500 workers, has been fulfilling its financial obligations to the state properly in accordance with its mining contract of work, and run production in line with target. (*)