Release: Rio Tinto reaches agreement with Indonesia?s Ministry of Finance on tax clauses
Tuesday, April 29 2008 - 12:48 AM WIB
Mike Jolley, President Director of Rio Tinto Indonesia says, ?Both parties are pleased with the outcome of the negotiation. The agreed clauses are based on a combination of fixed rates and prevailing regulations. This will provide sufficient certainty to Rio Tinto to support a multi billion dollar investment.
The terms are comparable to the tax incentives provided to other industries and developments of large scale, high capital cost projects in remote areas of Indonesia.
The next phase of the Contract of Work negotiation is to finalise the Regional and Community Development clauses with the Provincial and Regional Governments.
Concepts of sound sustainable development and corporate social responsibility will underpin the project.
Mike Jolley adds, ?Rio Tinto is looking forward to working with the people of Sulawesi and contributing to the social, economic and technological development that a project such as this will bring to the region for many years to come,?.
When the Regional Government negotiations are complete, the contract will then be submitted to the Indonesian House of Representatives for review.
About the Project
Rio Tinto considers the Sulawesi deposit to he one of the best undeveloped nickel resources in the world. The project is likely to involve capital costs of US$ 1.5 to US$2 billion, and will result in siginificant flow-through benefits to both the island and nation. The process will involve shallow open-cut mining, with continuous rehabilitation and is planned initially to produce about 46,000 tonnes of nickel metal per annum, but with potential to increase to about 100,000 tonnes. The project will also include the construction of an access highway and a new seaport on the east coast of Sulawesi. (end of release)