Indonesia to cut mineral export tax if miners pay smelter bond- official

Posted on July 25, 2014 by Nanthakumar Victor Emmanuel, P.Eng Leave a comment

(Reuters) – Indonesia will cut the tax levied on mineral concentrate exports to less than 10 percent from 20-25 percent for miners that pay a bond as a guarantee they will build a smelter later, a government official said on Thursday.

The move will allow mining companies to restart exports even if they have yet to complete smelters that would allow them to process more ore on Indonesian soil.

“If you want to build a smelter then you’re eligible for a lower tariff for the concentrate export tax,” fiscal policy chief Andin Hadiyanto told Reuters, adding that no export tax would apply to finished metals.