Newmont to export 200,000t mineral concentrates this year
Monday, September 1 2014 - 02:13 PM WIB
Gold and copper mining firm PT Newmont Nusa Tenggara (NNT), the Indonesian subsidiary of US-based Newmont Mining Corp, is expected to export a total of 200,000 tons of copper concentrates this year, according to Director General of Mineral and Coal R. Sukhyar.
?Until end of this year, (the company?s) export of concentrates could reach around 200,000 tons,? Sukhyar said on Monday, adding that it would provide export revenue of US$400 million.
He said that after the company withdrew its international litigation, the government hopes to be able to soon conclude mining contract renegotiation process with NNT, one of the key conditions for the company to be able to resume export.
Newmont announced last week it has decided to withdraw its lawsuit against the government, field in early July to seek relief from export restrictions that have halted production at the Batu Hijau mine in West Nusa Tenggara province. Following the tighter export policy introduced by the government in January of this year, NNT and other mineral concentrate producers suspended export. PT Freeport Indonesia resumed export in July after concluding renegotiation of its mining contract with the government, and fulfilled other requirements including putting in place a plant to build smelter in Gresik, East Java.
Senior government officials are hopeful that the renegotiation talks with NNT would be smooth and speedy as it would use the scheme it made with gold and copper giant PT Freeport Indonesia.
NNT has said that it has expressed interest to partner with Freeport in developing the domestic smelter.
Sukhyar said that in addition to concluding the mining contract renegotiation process, another requirement that must be met by Newmont is to put into the government?s bank account certain amount of funds to show its commitment to develop the smelter.
Editing by Reiner Simanjuntak