Government warns Newmont

The Ministry of Energy and Mineral Resources (MEMR) has warned gold and copper mining firm PT Newmont Nusa Tenggara (NNT) to make a request for an extension of its copper concentrate export permit, which expires March 18 of this year, reports said Friday.

Director for Mineral Management and Development at the ministry Edi Prasodjo was quoted by Kontan as saying that according to the regulation, NNT must submit the request by February 16, or 30 days before the expiry of the current permit.

Edi said that the ministry has sent warning letter twice to NNT, a subsidiary of US-based Newmont Mining Corp. ?They have not made the request until now, that?s why we warned them,? he said.

The government introduced in January of last year an export ban on mineral ores, but still allowed certain concentrates such as copper concentrates to be exported until 2017 pending the completion of the required domestic smelter.

In order to be able to export the copper concentrates, NNT is required to get an export permit. The government issued a six-month export permit for the company on September 18 of last year after the company signed an MoU on the amendment of its mining contract, and made commitment to build domestic smelter including by making a US$25 million deposit as part of the smelter commitment.

Edi said that before issuing an extension of export permit for NNT, the ministry will also review the progress of the company?s smelter plan. NNT has said it would team up with PT Freeport Indonesia in developing the smelter, by supplying the required concentrates. (*)