Bill passed on MET concessions for Russian Platinum project

MOSCOW. Feb 9 (Interfax) - The State Duma has passed in the third reading the law establishing a zero mineral extraction tax for palladium for the Russian Platinum project in the Krasnoyarsk Territory for a period of 12 years from January 1, 2026 (with the possibility of extension for another 8 years) provided that the company invests no less than 89 billion rubles between 2023 to 2030.

The document (N265873-8) was submitted to the parliament by the government in December.

According to the bill, the KMKR coefficient (used to calculate MET for multi-component complex ore containing copper, nickel and platinum group metals) will be zero from January 1, 2026 to January 1, 2038 for projects that meet a number of requirements.

The subsoil areas must be located wholly or partially in the Krasnoyarsk Territory, with license to use them issued before January 1, 2014, depletion of reserves as of January 1, 2022 of no less than 1% and content of platinum group metals in the mined ore of no less than 1 gram and not more than 4 grams per tonne of ore. According to the conditions, the taxpayer and user of mineral resources should not be a resident of the preferential regimes of SEZ, PSEDA, RIP, or SPIC, but must be a party to the agreement on protection and promotion of capital investment. The taxpayer must prior to December 31, 2023 conclude an investment agreement with the Finance Ministry and the Natural Resources Ministry for extraction of platinum group metals.

The Russian Platinum company and its project to develop the Chernogorsk deposit in Norilsk fall under the requirements specified in the draft law.

The agreement on palladium production must contain the following conditions: the volume of capital investments from January 1, 2023 through and including December 31, 2029 must be at least 89 billion rubles, excluding VAT. Investments must be directed to the creation, acquisition, construction, manufacture of fixed assets, including objects of road, transport, engineering, energy, utilities, social and digital infrastructure.

The timeframe of the agreement on palladium production is set from January 1, 2023 through and including December 31, 2037, with the possibility of an extension through December 31, 2045.