Miners seek to pay royalty of 2%

The Indonesian Mining Association (IMA) said it will propose to the government new royalty percentage level that will be discussed during contract renegotiation with the government.

?The average level of royalty for mineral should be at 2 percent of sales price. That?s the ideal level based on the study of IMA and the World Bank and royalty level imposed in other countries,? deputy chairman of IMA, Tony Wenas, was quoted by Bisnis Indonesia, as saying.

The government, said Tony, insists to impose royalty four percent for copper, 3.75 percent for gold and silver 3.25 percent. The decision on final royalty level should be agreed by two sides and avoid coercion from one party to the other, said Tony.

Tony said the government should also take into account the level of mineral product prices, which has declined significantly.(*)