Rio Tinto says it has reached an agreement with Indonesia's government on tax clauses for its proposed $2 billion (1.3 billion euro) nickel project on Sulawesi island.

Mike Jolley, a senior Rio Tinto executive in Indonesia, says the agreement reached with the country's finance ministry includes a combination of fixed rates and prevailing conditions.

Rio Tinto plans for the Sulawesi project to initially produce about 46,000 metric tons (50,000 US tons) of nickel per year from an open-cut operation, with the potential to increase to about 100,000 metric tons (110,000 US tons) a year.

When complete, the contract will then be submitted to Indonesia's parliament






Source: Agencies