Indonesia’s mining ministry said it is considering raising royalties paid by mining companies, reported Reuters. The country is the world’s biggest exporter of thermal coal and nickel products, as well as a major source of copper.
Officials propose raising royalty rates paid by miners and producers of metal products based on price levels, including introducing progressive rates for metals like nickel and copper, officials said during a public consultation about the proposal.
The government plans to levy royalties ranging between 14% and 19% for nickel ore depending on benchmark price levels, compared with the current 10% flat rate. For coal, the government would raise royalty rates by one percentage point up to 13.5%, but only when the benchmark coal price hit at least $90 per metric ton.
The proposal also suggested hiking the royalty rate for copper ore to between 10% and 17%, from the current flat 5%, with increases also considered for copper concentrate and copper cathode.
Royalty increases for tin, gold, silver and platinum were also proposed.
Source: Reuters