Newmount Resumes Indonesia Copper Exports

In early January 2014, the Indonesian government imposed a ban on the export of copper ore and introduced a progressive tax on copper concentrates, starting a long standoff between the government, companies and processing plants in the country. Copper export restrictions and the imposition of a tax forced Newmont Mining to suspend all operations at the Batu Hijau mine in June this year.

The dispute between the two groups was finally resolved when a Memorandum of Understanding (MoU) was signed between the government and the company. By signing the MOU, the company agreed to six main points, which include labor utilization, taxes and export duties, divestment, duration of work and maintenance contract, internal processing and refining, and lease size.

The company agreed with the government to pay a 7.5 percent export duty on copper concentrate exports. Martiono Hadianto, president and director of the company, said that for the 8,000 workers and contractors in Batu Hijau, the agreement is a great achievement and could contribute to the economic development of the Sumbawa Barat area. He also thanked the workers of the mine for their support and patience during the difficult period for the company, and also appreciated the work of the government on the creation of the Memorandum and the authorization for the export of copper.

After nine months of stalemate in Indonesia, Newmont Mining has finally exported its first shipment of copper. About 30,000 tons of copper were exported in the first batch.