Minister Hidayat signs LoI with Russian company
Tuesday, September 11 2012 - 08:51 AM WIB
Indonesian Industry and Trade Minister MS. Hidayat and Vladimir Strzhalkovsky, Director General and Chairman of the Board of Russian company OJSC MMC Norilsk Nickel, have signed a Letter of Intent (LoI) on future infrastructure projects to be developed in Indonesia.
The company said in a press statement that the signing took place on the sidelines of APEC Business summit in Vladivostok on September 8th. Both parties discussed implementation of the Company?s future projects in Indonesia, including construction of a copper smelting complex with a capacity of 400 thousand ton per year, as well as possible development of copper-nickel deposits in the region.
The talks resulted in a LoI signed by OSCJ MMC Norilsk Nickel and the Indonesian Ministry of Industry and Trade. It is designated as basis of technical cooperation concerning investment activities in metallurgical industry.
The document serves as proof of the Company?s interest to invest in mining and metallurgical facilities in Indonesia. The Indonesian Ministry of Industry and Trade has welcomed the Company?s move and is seeking to provide assistance in implementing Norilsk Nickel?s plans, by among other things, ensuring provision of raw materials for the copper smelting complex.
The issues encompassed awarding of tax preferences, including VAT benefits for imported equipment not produced in Indonesia, accelerated depreciation, tax holidays until the breakeven point as well as guarantees of raw materials supply.
Yudhoyono voiced support of Norilsk Nickel?s goals to implement promising projects in Indonesia and acknowledged possible benefits necessary for the Company.
The day before, on September 7th Vladimir Strzhalkovsky took part in talks with Indonesia?s Industry Minister MS. Hidayat. During the meeting, they discussed the planned construction of copper smelting complex and its specifications.
The Minister believes the plan will mark another milestone in enforcing the mining law no.4 introduced in 2009 to expand processing of raw materials In Indonesia, and to lay the groundwork for steady supply of minerals for the future facilities.
Editing by Benget Besalicto Tnb.