Inco, govt discussing review of royalty rate

PT International Nickel Indonesia (INCO) and the energy and mineral resources ministry are currently discusssing a plan to review the rate of the company`s royalties to the government, the company`s chief said.
"We and the mineral resources ministry are discussing the rate of our royalties but we have not yet decided how much we have to pay to the government," PT INCO President Director Arif S Siregar said here on Monday.
He said under its first work contract PT INCO was required to pay royalties on a floating basis, namely based on the nickel price prevailing in the world market.
Based on the signed 2008-2025 work contract, however, PT INCO was required to pay royalties at a flat rate based on the assumed nickel price of US$7 - US$8 per pound.