A nickel mine (ASX: NIC) Project in Indonesia has received corporate tax relief from the Jakarta government. The tax breaks include income tax waiver for a decade, followed by a 50 percent discount for the next two years.
The operating company of the Angel Nickel Rotary Kiln Electric Furnace (RKEF) “has been granted a substantial corporate tax reduction for its RKEF project which is nearing its first commissioning”.
Angel Nickel is an Indonesia-based PMA company. PMA stands for Perusahaan Penanaman Modal Asing, an Indonesian foreign investment company in which foreign stock ownership of up to 100 percent is permitted.
This company owns an RKEF project that includes 4 RKEF lines and a 380 megawatt power plant in which Nickel Mines has an 80 percent interest through Angel Capital Private Limited, a Singapore-based company.
Nickel’s existing RKEF projects Hengjaya Nickel and Ranger Nickel (both 2-line RKEF projects) are currently benefiting from a seven-year, 100 percent corporate tax break.
The extended duration of the tax-free period of 10 years applicable to Angel Nickel is attributed to the much larger scope and the “planned investment value”.
It should be noted that these concessions can be withdrawn, changed or adapted if one of the six conditions is not met.
Shares in nickel mines (ASX: NIC) trade 1.1 percent higher at $ 1.45.