A working meeting between the General Director, Chairman of the Board of OJSC MMC Norilsk Nickel (hereinafter – “Norilsk Nickel” or “the Company”) Vladimir Strzhalkovsky and President Susilo Bambang Yudhoyono of the Republic of Indonesia took place at APEC Business summit in Vladivostok on September, 8th. The 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 Letter of Intent signed by OSCJ MMC Norilsk Nickel and the Ministry of Industry and Trade of the Republic of Indonesia, designated 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 located in Indonesia. The Ministry of Industry and Trade of the Republic of Indonesia welcomes the Company’s move and seeks 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 Muhammed Suleiman Hidayat, which featured extensive discussion of prospects facing the construction of copper smelting complex and its specifications. The Minister stressed the weight placed on the project in Indonesia; he believes it to be another milestone in enforcing the Mining Law No.4 introduced in 2009 to expand processing of raw materials In Indonesia, laying the groundwork for steady supply of minerals for the future facilities.