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- Nickel Mines’ (NIC) Indonesian operating entity, Angel Nickel, secures material corporate tax relief for its rotary kiln electric furnace (RKEF) project in the Indonesia Weda Bay Industrial Park
- Tax relief includes income tax reduction of 100 per cent for 10 years, then for 2 years a tax reduction of 50 per cent and a 10-year exemption of tax collection by third parties on sales
- Currently, two existing projects benefit from a 7-year 100 per cent tax reduction
- Nickel Mines is down 1.71 per cent at A$1.44 per share
Nickel Mines’ (NIC) Indonesian operating entity, Angel Nickel, secures material corporate tax relief for its rotary kiln electric furnace (RKEF) project in the Indonesia Weda Bay Industrial Park.
Angel Nickel is an Indonesian company with an RKEF project that comprises 4 RKEF lines and a 380MW power plant. Nickel Mines holds 80 per cent interest via a Singaporean company, Angel Capital Private.
The tax relief has officially been communicated by the Minister of Finance of the Republic of Indonesia. This comes after a study to assess whether Angel Nickel qualification was completed.
Angel Nickel has received the following tax concessions:
- Corporate Income Tax Reduction of 100 per cent for 10 years,
- Corporate Income Tax Reduction of 50 per cent for 2 years after the end of the initial 10-year period,
- Exemption from withholding and tax collection by third parties on sales proceeds that would normally remitted to the Indonesian Revenue Department for 10 years.
Two of Nickel Mines’ existing projects currently benefit from a 7-year 100 per cent corporate tax relief.
Managing Director of the Angel Nickel Project, Justin Werner, said the company is delighted by the tax concessions.
“The tax relief Angel Nickel will enjoy over the next decade will further enhance the already exceptionally strong cashflows and profitability of our assets, translating into tangible benefits for the Company’s ongoing operations, future growth prospects and potential distributions to its shareholders,” he said.
Nickel Mines is down 1.71 per cent at A$1.44 per share at 9:50 am AEDT.
