Rio Tinto may be granted Sulawesi nickel CoW Sept
Friday, June 9 2006 - 10:10 AM WIB
The government said on Friday that it might sign Sulawesi nickel Contract of Work (CoW) with Anglo-Australian miner Rio Tinto Plc on September.
?The government is working to complete negotiation and sign the CoW in September, before President SBY will leave for UK,? said Mangantar Marpaung, Director of Coal and Mineral at the Ministry of Energy and Mineral Resources.
Marpaung said the government and Rio Tinto had made significant negotiation on the terms and conditions of the CoW. The only major issue has yet to be resolved is taxation regime that would be used in the CoW, said Marpaung. Most CoWs in Indonesia are using nail-down tax regime, meaning that tax rates were fixed during the length of the contract period.
La Sampala nickel prospect is located in Central and Southeast Sulawesi provinces. (godang)