Newmont MoU delayed, not linked to Jero?s status as graft suspect
Wednesday, September 3 2014 - 02:11 PM WIB
The government failed on Wednesday to sign an MoU with gold and copper mining firm PT Newmont Nusa Tenggara (PTNNT), the Indonesian subsidiary of US-based Newmont Mining Corp, as initially scheduled, a senior official said.
Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources, R. Sukhyar told reporters that PTNNT has yet to agree on one of the six main points of the contract renegotiation, which is the obligation for the company to develop domestic smelter.
Sukhyar said earlier on Tuesday that the government and PTNNT have concluded the mining contract renegotiation as the company has agreed to all of the six main points proposed by the government including the requirement to build domestic smelter. He said that an MoU on the conclusion of the mining contract renegotiation was expected to be signed on Wednesday, which would pave the way for PTNNT to obtain the necessary permit for export of copper concentrates which has been suspended since January 12 of this year after the government introduced a tougher requirements for export of mineral concentrates as part of an overall mineral export ban policy.
Sukhyar said that despite the delay, he was still hopeful that the MoU would be signed ?within the next one or two days.?
He, however, dismissed speculation that the delay was linked to the announcement by the Corruption Eradication Commission Wednesday that Minister of Energy and Mineral Resources Jero Wacik has been named as suspect in alleged extortion cases at the ministry during 2011-2012.
It remains unclear on why the obligation for PTNNT to build domestic smelter emerges as a new problem to the signing of the MoU as the company had previously agreed to team up with gold and copper giant PT Freeport Indonesia to develop smelter in Gresik, East Java. The company, according to Sukhyar earlier Tuesday, has also agreed to put down a deposit with the government?s bank account worth US$25 million as proof of its serious in realizing the smelter plan.
The signing of the MoU and the display of seriousness in building the domestic smelter are two of the key conditions to be able to get export permit from the Ministry of Trade.
Newmont in early July filed international lawsuit against the government of Indonesia as the tougher export requirements have caused the company to be unable to export its mineral concentrates from the Batu Hijau mine in West Nusa Tenggara Province. The firm withdrew the lawsuit last month on hopes that it would be able to conclude the mining contract renegotiation and resume export soon particularly as its peer PT Freeport Indonesia has already obtained export permit.
Editing by Reiner Simanjuntak