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Government to Cut Export Duty for Freeport and Newmont



The government of Indonesia will in coming days cut the export duty of copper and iron concentrates for Freeport Indonesia and Newmont Nusa Tenggara as 2 companies have committed to build smelters, Bisnis Indonesia reported this morning.

Freeport and Newmont will pay to the state security deposits of US$115 million and US$25 million respectively. The government expects to make a deal with Freeport and Newmont on the meeting scheduled for next week.

Other companies, PT Sebuku Iron Lateric Ores and PT Lumbung Mineral Sentosa will also pay security deposits of US$12.1 million and US$3244,785 each.




Freeport, Newmont Allowed to Export Minerals in June


TEMPO.COJakarta - Coordinating economic minister Chairul Tanjung said Freeport Indonesia and Newmont Nusa Tenggara have confirmed their commitment to build smelters and will soon to deposit their financial guarantee, more commonly called surety bond, in government-appointed banks.

"So, the problems, particularly those related to mineral exports, can be settled because the export duty will be adjusted by the Finance Minister’s Regulation," Chairul said at a press conference after a coordination meeting on Wednesday night, May 28, 2014.

Chairul said Freeport will deposit US$115 million, while Newmont that has pledged to build smelters with Freeport is committed to pay US$25 million.

"Both companies will build a large-capacity smelter," Chairul said.

According to Chairul, both companies paid different amount of money because each of them has different production capacity.

Chairul further added that he will report the matters to the president and ask for approval in a limited cabinet meeting.

"Simultaneously, the finance minister then will issue the regulation and the trade minister will issue export permits," he said.




Chairul Tanjung: No Newmont Employee will be Fired


TEMPO.CO, Jakarta - Coordinating Minister for Economic Affairs Chairul Tanjung assured that no employees of Newmont Nusa Tenggara will be fired, as there would be no need for the company to cut its production.

Chairul said the US-based copper and gold mining company will immediately receive an export duty reduction, now that it has promised to pay a US$25 million financial guarantee to proof its commitment to build smelters for mineral processing.

"The issue of layoffs and production halt can be resolved," Chairul said in a press conference after meeting with other ministers about minerals held at Coordinating Ministry for Economy office on Wednesday evening, May 28.

The meeting, which was also attended by Freeport Indonesia director Rozik Soetjipto and Newmont's president director Martiono Hadianto, resulted in a decision that Freeport will build a smelter. Meanwhile, Newmont will be using the smelter developed by Freeport and Aneka Tambang with smaller production capacity.

Previously, Martiono Hadianto said his company plans to fire a number of its employees in early June 2014, as the result of its decision to lower production. Newmont opted to cut production because they have not received the government's permission to export copper concentrates.



[Last update: 2014-05-30 10:34:47]

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