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- Nickel Mines (NIC) announces “material corporate tax relief” for the Indonesian operating entity PT Oracle Nickel Industry that manages its Oracle nickel rotary kiln-electric arc furnace (RKEF) project in Indonesia
- The company says the Indonesian Minister of Finance approved a 100 per cent corporate income tax reduction for a period of 10 years, starting from the tax year in which commercial production commences
- Other tax concessions include a 50 per cent corporate income tax reduction on payable income tax for a period of two years, starting from the end of the initial 10-year period, as well as an exemption from withholding and tax collection by third parties on sale proceeds for a period of 10 years
- Nickel Mines says Oracle Nickel remains on track to produce its first nickel pig iron (NPI) at Oracle on or before the end of February 2023
- NIC shares down 0.42 per cent to $1.20
Nickel Mines (NIC) has announced “material corporate tax relief” for the Indonesian operating entity that manages its Oracle nickel rotary kiln-electric arc furnace (RKEF) project in Indonesia.
The RKEF project is currently under construction within the Morowali Industrial Park (IMIP) in Central Sulawesi.
It comprises four RKEF lines with a nameplate capacity of 36,000 tonnes per annum of nickel and a 380MW power plant.
Nickel Mines said the Indonesian Minister of Finance granted the project’s Indonesian operating entity PT Oracle Nickel Industry a 100 per cent corporate income tax reduction for a period of 10 years, starting from the tax year in which commercial production commences.
Other tax concessions include a 50 per cent corporate income tax reduction on payable income tax for a period of two years, starting from the end of the initial 10-year period, as well as an exemption from withholding and tax collection by third parties on sale proceeds for a period of 10 years.
“These tax concessions along with the very low levels of sustaining capex required by our RKEF operations have resulted in 97-99 per cent EBITDA to free cash flow conversion over the course of 2021,” Managing Director Justin Werner said.
Nickel Mines said Oracle Nickel remains on track to produce its first nickel pig iron (NPI) at Oracle on or before the end of February 2023.
NIC shares were down 0.42 per cent at $1.20 at 11:05 am AEDT.
