Newmont seeks to renew Mou with Freeport

Gold and copper giant PT Newmont Nusa Tenggara (NNT), a subsidiary of US-based Newmont Mining Corp, is seeking to extend an existing MoU with another giant PT Freeport Indonesia (PTFI), a subsidiary of US-based Freeport McMoRan Copper & Gold Inc, on the cooperation to develop a smelter copper cathode smelter in Gresik, East Java, Bisnis Indonesia reported on Wednesday.

The paper said that the current MoU, signed on March 31, will expire on September 30 of this year.

?NNT and Freeport are still cooperating, and there?s plan to make the (MoU on the) cooperation more detailed,? said NNT spokesman Rubi Purnomo as quoted by the paper. PT FI declined to provide comments.

Following the introduction of an export ban of mineral ores by the government early last year, miners are required to develop domestic smelter to be able to export refined products. But certain concentrates producers including NNT and PTFI have been given exemption until 2017, by which time they?re expected to develop domestic smelters. While PTFI has announced plan to build a smelter in Gresik, NNT said it would not do so, but instead proposed it would help PTFI in realizing the planned smelter and supply the required concentrates.

The companies are required to show progress in developing the smelter project to be able to get renewal of their six-month export permit. (*)