Newmont discontinues and withdraws arbitration claim
Wednesday, August 27 2014 - 05:14 AM WIB
Based on encouraging recent developments, PT Newmont Nusa Tenggara (PTNNT) announced on Tuesday that the company and Nusa Tenggara Partnership BV (NTPBV), PTNNT?s majority shareholder, requested discontinuance and withdrawal of the arbitration claim filed with the International Centre for Settlement of Investment Disputes(ICSID) relating to the export restrictions that halted production at the Batu Hijau copper and gold mine in Sumbawa Barat.
The decision to discontinue and withdraw arbitration comes after commitments from senior governmental officials to open formal negotiations to conclude a Memorandum of Understanding (MoU) with PTNNT upon cessation of the arbitration claim. Signing of a MoU with the Government would be followed by the safe ramp-up of copper concentrate production and exports from Batu Hijau.
?PTNNT remains committed to its long-term partnership with Indonesia and seeks to demonstrate its support for the Government?s policies, the Indonesian people, and the ongoing responsible development of the country?s natural resources,? the firm said.
PTNNT and NTPBV, a Dutch firm, announced on July 1 the filing of international arbitration against the Government of Indonesia to seek relief from export restrictions that have halted production at the Batu Hijau mine and inflicted hardship and economic loss on PTNNT?s employees, contractors, and other stakeholders.
According to the firms, the government?s imposition on PTNNT of new export conditions, a new export duty, and a new January 2017 ban on the export of copper concentrate violates the Contract of Work (CoW) and the bilateral investment treaty between Indonesia and the Netherlands.
In response to the arbitration filing, President Susilo Bambang Yudhoyono (SBY) signed last month a presidential decree on the appointment of a special team to deal with the issue. The president also instructed to get the best lawyers to help the government in facing the lawsuit.
Coordinating Minister for the Economy Chairul Tanjung said that the president was disappointed with the move by NNT to file lawsuit at a time when the government and the company were still in negotiation process.
Editing by Johannes Simbolon