- Nickel Mines (NIC) shares fall as the company attempts to quell rumours of a speculated export tax levy from the Indonesian government
- The company sought to reassure investors regarding comments made by Indonesia’s Investment Minister
- Nickel Mines’ Managing Director Justin Werner says the company does not believe the export tax is a planned policy at this stage
- Nickel Mines shares were down 8.26 per cent to trade at $1.00
Nickel Mines (NIC) shares fell after the company attempted to quell rumours of a speculated export tax levy from the Indonesian government.
The company said it acknowledged the “uncertainty” that suggestions from the Indonesian Investment Minister, regarding levying an export tax on nickel products with less than 70 per cent nickel content, may have caused.
However, Nickel Mines sought to clarify that the reported statement from the Minister was followed by the indication that “discussions were at an early stage and no details had been decided yet”.
Nickel Mines Managing Director Justin Werner said the company did not believe the export tax was a planned policy at this stage but sought to reassure investors, nonetheless.
“Whilst we do not currently believe the rumoured export tax to be the planned policy of the Government, it is worth noting that at present, approximately 50 per cent of the Company’s NPI production is sold within the IMIP (in-country),” he said.
“The Company also has a memorandum of understanding for two of its RKEF lines to undergo conversion to allow the production of nickel matte which can be processed within the IMIP to a grade of greater than 75 per cent.”
In its statement to the market, Nickel Mines advised it had discussed the comments made by the minister with its Indonesian contacts, concluding the comments were made “without prior consultation with other Indonesian Government Ministries.”
Nickel Mines shares were down 8.26 per cent at 1:24 pm AEST to trade at $1.00.