New copper tax clouds Freeport McMoRan's outlook in Indonesia


Freeport McMoRan (FCX -1.5%) may face as much as $5B in extra taxes over the next three years if it fails to convince Indonesia's government to back down from a new export tax.

FCX and Newmont Mining (NEM) together account for virtually all copper mining in Indonesia and are exempt from export taxes under current contracts, but new rules hike to 25% a tax for copper concentrate exports and levy the tax on FCX and NEM for the first time; the tax would rise to 60% by the end of 2016 before exports of concentrate are banned from 2017.

The two miners are expected to meet finance ministry officials today.

Cowen is out cautious on FCX shares, citing the issues surrounding the Indonesia export license.

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Comments (5)
  • steve cotela
    , contributor
    Comments (4) | Send Message
     
    Don't worry about all the media hype! The print money at FCX coper is never going out of style! And with all their investments in oil there positioned for real growth over time.
    18 Jan 2014, 03:39 AM Reply Like
  • WPSPIKER
    , contributor
    Comments (1149) | Send Message
     
    Kind of funny, I remember reading some other information stating that )FCX) have already worked out deals w the government over there for next 4 years!?!? SOOO things that makes you go HUMMM...
    18 Jan 2014, 04:12 PM Reply Like
  • BSmith8592
    , contributor
    Comments (43) | Send Message
     
    If Indonesian government doesn't relax tax requirements Freeport
    should cut back mining activities by 60%. Only mine what
    smelter can handle until new facilities are constructed.
    Reinvest the money in US oil and gas. Then the government
    can deal with a 60% loss in taxes and royalties.
    19 Jan 2014, 10:48 AM Reply Like
  • gap123
    , contributor
    Comments (295) | Send Message
     
    Blatant media market manipulation of this stock. Take advantage now and accumulate. 50 pt by June
    19 Jan 2014, 09:12 PM Reply Like
  • Ford289HiPo
    , contributor
    Comments (1088) | Send Message
     
    Is it just me, or does it seem like the only news coming out about FCX is negative news?
    20 Jan 2014, 01:53 PM Reply Like
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