Inco working contract set to be extended<\/p>\n
JAKARTA (JP): The House of Representatives is likely to
\napprove the plan of PT International Nickel Indonesia (Inco) to
\nextend its working contract for coal mining in southern Sulawesi
\nfor another 30 years, House members said yesterday.<\/p>\n
\"The House may approve the contract extension in the middle of
\nthis month,\" Adimir Adin, a member of the House's Industry, Mines
\nand Investment Commission, told The Jakarta Post.<\/p>\n
Adimir, who attended a hearing between the commission and
\nMinister of Mines and Energy I.B. Sudjana, said that the company
\nwill spend about US$1.5 billion for its expansion plan.<\/p>\n
Inco's current working contract will expire in the year 2008.<\/p>\n
Sudjana told the hearing that Inco, which is owned by Inco
\nLtd. of Canada, Sumitomo of Japan and public investors, will
\ngradually increase its annual production capacity by 200 percent,
\nfrom 100 million pounds (45,000 tons) at present to 300 million
\npounds to meet increasing demand for nickel on the world market.<\/p>\n
He said Inco had invested $1.34 billion in its mines in
\nSoroako, southern Sulawesi, as of 1994.<\/p>\n
\"The extension of the working contract will increase the
\ngovernment's revenues from the company's royalties and taxes,\" he
\nsaid.<\/p>\n
Sudjana said the government expects to earn Rp 444.4 billion
\n($193.2 million) from the royalties after the extension of the
\nworking contract, while the South Sulawesi administration will
\nearn Rp 137.45 billion.<\/p>\n
He said the concession fee from the company tax will increase
\nfrom $1 per hectare to $1.50 per hectare after the extension.<\/p>\n
Inco, which floated 20 percent of its shares on the Jakarta
\nand Surabaya stock exchanges in 1990, currently has a concession
\narea of 218,530 hectares in Soroako.<\/p>\n
Sudjana said Inco would be required to build an 80-kilometer
\nroad from Bahudopi to Soroako and make an initial contribution of
\n$3 million to the South Sulawesi administration. (04)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/inco-working-contract-set-to-be-extended-1447893297",
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