Indonesia bans ore exports but miners can still export concentrates


Indonesia clarifies its mineral export ban, closing the door on the export of ores but allowing the export of six forms of concentrate that will permit some of the country's biggest foreign miners to continue operations.

The finance minister says miners can pay special taxes to be able to export copper, iron ore, manganese, lead, zinc and ilmenite for the next three years as long as they meet minimum purity levels, meaning Freeport McMoRan (FCX -0.7%) and Newmont Mining (NEM -0.6%) can continue to export from their huge copper mines in the country but with a 20% tax.

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Comments (8)
  • prattner
    , contributor
    Comments (40) | Send Message
     
    Note to self: Add Indonesia to the list of untrustworthy jurisdictions...
    13 Jan 2014, 09:46 AM Reply Like
  • Siwanoy
    , contributor
    Comments (717) | Send Message
     
    Do I read this as meaning the tax increase is only 5%?
    13 Jan 2014, 09:58 AM Reply Like
  • healthpicker
    , contributor
    Comments (1098) | Send Message
     
    good question, I assume current tax is 15% - moving to 20% is no big deal. They will have to do something about their smelting capacity though and three years is not a long time.
    13 Jan 2014, 01:59 PM Reply Like
  • lsuavecito
    , contributor
    Comments (2557) | Send Message
     
    Wait, there will be a new set of parameters next week or next month. Why FCX is diversifying into oil/gas becomes more transparent.
    13 Jan 2014, 02:22 PM Reply Like
  • alphaman
    , contributor
    Comments (325) | Send Message
     
    Given the political risk associated with miners such as FCX, does anyone see FCX as a buy and hold? If so, why?
    14 Jan 2014, 12:53 AM Reply Like
  • lsuavecito
    , contributor
    Comments (2557) | Send Message
     
    The juicy dividend, and the 'kowboyz' driving the herd.
    14 Jan 2014, 12:46 PM Reply Like
  • bberuch
    , contributor
    Comments (314) | Send Message
     
    SIWANOY sems to state that the current tax rate is 15%, HEALTHPICKER seems to assume the current tax rate is 15%, I am not sure and hate assuming that the clarification by Indonesia is saying exactly that. It only says that the NEW temporary tax rate will be 20%.
    The article itself only raises questions.
    14 Jan 2014, 12:46 PM Reply Like
  • mpcascio
    , contributor
    Comments (258) | Send Message
     
    Doing business Chicago style.
    17 Jan 2014, 09:42 PM Reply Like
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