Newmont faces risk of export suspension

Gold and copper giant PT Newmont Nusa Tenggara (NTT) is facing the risk of export suspension as its permit to export copper concentrates expires today (May 20), while the Ministry of Energy and Mineral Resources has yet to provide the necessary recommendation letter for the company to be able to get the permit renewal from the Ministry of Trade.

Director General of Mineral and Coal Bambang Gatot Ariyono said on Thursday that the ministry would provide the recommendation letter only if the company has met all the requirements. He did not provide further details.

It is believed that one of the requirements is the company?s seriousness in realizing its earlier commitment to help fund a US$2.3 billion copper smelter to be developed by another giant PT Freeport Indonesia in Gresik, East Java. NNT is supposed to chip in about $3 million in the smelter project that would have an annual capacity of 2 million tons.

NTT has applied for an extension of its copper concentrates export permit for another six months. The company has requested an export quota of 430,000 tons, or the same as the volume in the current permit, Kontan reported.

The government banned the export of mineral ores in early 2014 in a bid to push miners to develop domestic smelters to generate greater value at home from the country?s mineral resources. However, export of mineral concentrates including copper have been allowed to continue until 2017, when the required smelters should have been develop, but the miners must get export permit from the Ministry of Trade with recommendation letter from the Ministry of Energy and Mineral Resources (MEMR).

Meanwhile, NTT Spokesperson Rubi Purnomo was quoted by Kontan as saying Friday that the company has applied for the extension of export permit in line with the existing MEMR Regulation No 5/2016. ?We hope the permit (extension) can be immediately issued so as not to affect operation at the Batu Hijau mine,? Rubi said. (*)