Ministry proposes progressive royalty for gold, copper, silver

Petromindo|Thomas

The Ministry of Energy and Mineral Resources has proposed for the government to apply a progressive royalty tariff for three mineral commodities of gold, copper and silver as part of the ongoing revision of Government Regulation No 9/2012 on tariff and type of state non-tax revenue (PNBP), news portal kontan.co.id.

The news portal quoted Director of Mineral Development and Management at the ministry Bambang Susigit as saying Monday that the proposal was made to help increase state revenue.

He said that the progressive tariff will be applied once the prices of gold, copper and silver have reached certain levels. He cited as an example that the progressive royalty tariff on gold will be applied once the price of the commodity reaches US$1,300 per oz. The tariff will increase by 0.25 percent for every price increase of $100 per oz.

Bambang said that that technically, the increase in gold price does not necessarily accompanied in the increase of production cost, which means that any additional profit enjoyed by miners must be shared with the state. (*)