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17/07/2024
Mining News

Indonesia raises export taxes on key minerals

Indonesia’s export tax rates for copper, iron, zinc and lead concentrates are being increased as the government tries to push miners to process metals at home rather than export raw minerals.

The rates for copper concentrate will rise to a range of 5% to 10%, according to a new regulation.

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The tax is part of the government’s bid to drive smelter construction in Indonesia, with the aim of increasing domestic processing to get more value from mineral resources. It also banned exports of raw minerals in June.

However, it allowed several companies whose smelter construction is more than 50% complete to continue exporting mineral concentrates until mid-2024 if they pay the export taxes. Miners with the highest rate of smelter completion are charged lower rates.

Under the new rules, copper miners whose completion rate stands at 50% or more, but less than 70%, will pay an export tax rate of 10%. Those whose smelters are 70% or more complete, but less than 90%, will pay 7.5% and those whose smelters are 90% or more complete will pay 5%, the regulation said.

The maximum copper miners previously had to pay on their exports was 5%.

The rates for iron, zinc and lead concentrates will also rise to a range of 2.5% to 7.5% based on the same rates of smelter completion, the regulation said.

The new rates are effective until December 2023, the finance ministry said, adding that they would also rise again in January 2024.

The export tax rates for copper concentrate will rise to a range of 7.5% to 15% depending on smelter completion from Jan 1 until May 31, 2024, according to the regulation, while the range for iron, zinc and lead concentrates will rise to between 5% and 10%.

 

Source: Bangkok Post

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