18th Sep 2014 09:43
LONDON (Alliance News) - Ironveld PLC Thursday said its tax allowance incentive application for its 15 megawatt smelter has been approved by the Republic of South Africa's Department of Trade and Industry.
The 15 megawatt smelter, in the northern limb of the Bushveld Complex, South Africa, has been classified by the DTI as a greenfield project, meaning a new development, with qualifying status from September 2014 until September 2018, said Ironveld.
The smelter is due to start production in late 2015.
The incentive value of the 12I tax allowance scheme is now estimated to be approximately GBP3.1 million, it added.
Section 12I is an additional income tax allowance, claimed in the tax year when the asset is brought into use. It is not a grant that is paid by the DTI to Ironveld but an additional tax allowance that is claimed over and above normal tax allowances associated with the asset. The incentive value is the after tax value of the additional allowance, said the company in a statement.
"The DTI's acknowledgment and the approval of the 12I application is an important milestone, highlighting the government's support and confidence in the company," said Chief Executive Peter Cox.
Ironveld's shares were up 0.8% to 7.05 pence per share Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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