Newmont Mining Corp is considering all its options, including the legal option, in Indonesia where it faces a new progressive export tax, even as it continues talks with the government to resolve issues.
Indonesian government officials have informed PT Newmont Nusa Tenggara that the ban on copper concentrate exports from Batu Hijau on the island of Sumbawa in Indonesia does not take effect until January 11, 2017, the company said in a statement on Wednesday January 22.
Indonesia softened the ore export ban by allowing copper concentrates with copper content above 15% to be exported for three years but imposed a significant export tax wherein producers such as Newmont will pay a 25% export tax right now going up to 60% by the end of 2016.
The recently released government regulations “include new and potentially restrictive conditions to obtain an export permit, as well as a significant export duty,” the miner said.
“The Contract of Work (CoW) signed with the government of Indonesia provides PTNNT the right to export the copper concentrate produced at Batu Hijau’s processing facility,” Blake Rhodes, Newmont’s senior vice president, Indonesia, said it the statement.
“The CoW also explicitly sets the types and levels of taxes, levies, and duties PTNNT is required to pay, thereby establishing all tax obligations,” he said.
Newmont plans to provide an update on the Indonesian situation on January 31 during its call with investors when it will also talk about its 2013 preliminary operating and sales results.
The Indonesian mining industry has been lobbying the government to reconsider its export tariff and experts have spoken about the possibility of big miners taking the case to an international court for arbitration.
Shivani Singh
shivani.singh@metalbulletinasia.com
Twitter: @ShivaniSingh_MB
