South Sulawesi administration targets Rp 9.8 billion in royalty from Inco
Saturday, February 24 2001 - 04:30 AM WIB
The South Sulawesi administration has targeted to collect Rp 9.8 billion this year in royalty payment from private nickel mining company PT International Nickel Indonesia (Inco) that operates nickel mines in the province.
The target is included in the 2001 provincial budget that has been submitted to the provincial legislative council for approval.
The provincial budget stipulates that the Rp 9.8 billion in royalty payment by Inco is drawn to accommodate local people's demand for higher natural resource royalty payment based on financial situation of the foreign investment company.
PT Inco Tbk reported earlier that it booked a net profit of US$63.6 million last year, a far higher figure than $3.5 million recorded in 1999. The company attributed the soaring profit in 2000 to increasing sale volume of nickel and rising nickel prices in international market.
The company said that it could increase nickel production last year because of the completion of its expansion project in its mining sites in Soroako, North Luwu, South Sulawesi.
It also said that nickel prices also rose last year. For illustration, nickel prices increased by 8 percent in the third quarter of last year to $2,734 per ton of nickel over the same period of 1999. (*)