Newmont?s payments to govt reach Rp 1.16t in Q2

Copper and gold mining company PT Newmont Nusa Tenggara (NNT) paid the government a total of Rp 1.16 trillion in taxes, non-taxes and royalties in the second quarter of this year (Q2 2016), higher than Rp 969 billion paid in Q1 2015, the firm said in a statement on Tuesday.

?The largest payment was cooperate tax (PPh 25) which amounted to Rp 479 billion, followed by concentrate export duty amounting to Rp 331 billion, and royalty amounting to Rp 259 billion. Meanwhile, income tax (PPh 21) amounted to Rp 54 billion,? spokesperson Rubi Purnomo said in a statement.

Corporate tax payable by the firm is 35 percent under contract, he said.

Throughout the first half of the year, the firm paid a total of Rp 2.29 trillion in tax, non-tax and royalty.

?Payments of tax, non-tax and royalty in Q2 2016 rose significantly compared to the same period of last year. This happened because aside from an increase in royalty tariff, the existence of concentrate export duty, the firm operated at maximum capacity despite the low metal price in 2015,? Rubi said.

Rubi said NNT is committed to meeting its financial obligation to the government despite the current difficult situation caused by the commodity price crash. The firm is optimistic the commodity prices will move to a more positive direction this year.

NNT signed the Fourth Generation Contract of Work on Dec. 2, 1986. Since the start of operation in 2000, the firm has contributed around Rp 100 trillion through payments of tax, non-tax, royalty, employee salary, local service and goods procurement, and dividends for local partners.

Editing by Johannes Simbolon