Govt Adjusts Gold and Nickel Royalties

By Editorial Team 25/08/2022
Bullion bank
Summary

The government has decided to adjust the gold and nickel royalties through the Government Regulation (PP) No. 26/2022 on types of non-tax state revenues applicable to the Energy and Mineral Resources (ESDM) Ministry. ESDM ministry's director of mineral and coal program development Tri Winarno said that the royalty rate adjustment was due to a windfall. "Layers of gold royalty are added when the price is above US$1,800 per troy ounce," he told Kontan.co.id on Tuesday.

The government regulation also states that nickel ore with less than 1.5 percent nickel content used as raw material for the battery-based electric vehicle (EV) industry is subject to two percent of the price. Previously, this rate does not exist. "For the downstream sector, the royalty is lower than ore. For example, nickel matte is only charged at two percent, while for nickel ore, it's ten percent," Tri said.

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