By I Made Sentana
JAKARTA, Indonesia--Failure to secure an export permit has
forced a halt to copper-concentrate production at Newmont Mining
Corp.'s (NEM) Indonesian unit's Batu Hijau mine, it said
Tuesday.
The company hopes a ministerial meeting this week will clarify
rules for exporting concentrates, PT Newmont Nusa Tenggara
spokesman Rubi Purnomo said in a news release. Employees remain at
work pending news from the meeting, he said.
A government-imposed export tax of between 20% and 25% rising to
60% by 2016 on concentrates is a breach of contracts, Newmont Nusa
Tenggara and competitor Freeport-McMoRan Copper & Gold Inc.'s
(FCX) local unit PT Freeport Indonesia have said.
Meanwhile, "copper concentrate storage facilities at Batu Hijau
are now full forcing the operation to halt processing activities
and cease production of copper concentrate," Mr. Purnomo said. The
mine is on Sumbawa Island in West Nusa Tenggara province.
Indonesia banned raw-mineral exports in January in a bid to
force mining companies to process the ore domestically to boost
value. But mining companies say they can't compete with cheaper
smelters in places like China.
Both Freeport Indonesia and Newmont Nusa Tenggara have agreed to
supply copper concentrates to two companies that will build local
smelters.
Indonesia is a large producer of nickel ore, bauxite, tin,
copper and thermal coal.
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