A subsidiary of Perth-based minerals explorer Grange Resources Ltd has been granted a substantial tax incentive by the Malaysian Government for its Kemaman Pellet Plant Project.
A subsidiary of Perth-based minerals explorer Grange Resources Ltd has been granted a substantial tax incentive by the Malaysian Government for its Kemaman Pellet Plant Project.
The subsidiary, Grange Developments Sdn Bhd, is responsible for the planned development of the Company's approximately $714 million iron ore pellet plant operation to be built at Kemaman in Malaysia.
The Malaysian Minister of Finance has approved Pioneer Status for the project with a package of special incentives including:
A 100% corporate income tax exemption at the statutory income level for a period of 15 years.
An Infrastructure Allowance to construct and provide infrastructure to the West Wharf at Kemaman Port. The Company can offset the Allowance against 85% of the statutory income after the 15 year tax exempt period.
A 100% exemption on Withholding Tax applicable on payments to non-residents for interests, royalty, services and contracts for a period of 5 years commencing from 2007.
An exemption on import duty and sales tax on all raw materials and machinery imported into the country by Grange used directly in the manufacturing of iron ore pellets.
25 expatriate positions to operate the project, and
A Matching Training Grant of $370,000 for a period of four years beginning 2009.
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