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Indonesia's mining exports at standstill after new rules, official says

  • Indonesia's metal ore and concentrate exports have ground to a halt, a trade ministry official tells Reuters, with a ban on ore shipments and an export tax introduced less than two weeks ago hurting the mining industry.
  • Indonesia introduced an ore export ban on Jan. 12, although last-minute amendments eased the impact of the export ban on copper miners Freeport McMoRan (FCX) and Newmont Mining (NEM), which are now subject to a progressive export tax on concentrates.
  • Freeport Indonesia has yet to resume exports since the export tax was introduced.
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Comments (9)
  • healthpicker
    , contributor
    Comments (1072) | Send Message
     
    put to one side the impact on FCX - at least they process 40% through the current local smelter - the population is going to be in chaos over this. If the business case was there for development of more local processing then it would have happened by now. Indonesian government are going to have to rethink this - why don't they finance new facilities themselves if they think it is such a good idea?
    24 Jan 2014, 04:57 PM Reply Like
  • gap123
    , contributor
    Comments (269) | Send Message
     
    Nor should they! FCX should close the mines down temporarily, and put it all back on the local govts. I would support that, and the people will sort it out amongst themselves!
    24 Jan 2014, 05:59 PM Reply Like
  • Longboat
    , contributor
    Comments (11) | Send Message
     
    Biting the hand that feeds you is not a wise decision for the government. If they become greedy and anti business the people and government lose out. A piece of the pie is better than.....
    24 Jan 2014, 08:14 PM Reply Like
  • sethmcs
    , contributor
    Comments (3489) | Send Message
     
    NEM is not happy......
    25 Jan 2014, 05:34 PM Reply Like
  • User 7972461
    , contributor
    Comment (1) | Send Message
     
    I give it another fortnight before the government reverse decision (in part at v least)
    26 Jan 2014, 08:51 AM Reply Like
  • 2PP
    , contributor
    Comments (352) | Send Message
     
    Just like Barrick in Argentina and Newmont in Peru, once a company sinks a big chuck of money in a project the host country thinks they can rewrite the rulebook. It would teach them a lesson if both NEM and FCX stop mining and let the locals fight it out with the government.
    26 Jan 2014, 08:56 AM Reply Like
  • BigT6661
    , contributor
    Comments (128) | Send Message
     
    Business will travel to where it is welcome. Politicians learn this the hard way worldwide. FCX will adjust and concentrate resources where they can do the most good. I'm thinking Plan B was drafted a long time ago and this move did not catch them flat footed.
    26 Jan 2014, 09:03 AM Reply Like
  • Herbert1234
    , contributor
    Comment (1) | Send Message
     
    It was also supposed be a political move to garner votes for upcoming elections, but while locals have an underlying dislike of smart foreigners running efficient and successful enterprises; they quietly know that if these giants were nationalized the salaries and benefits would be vastly lower and injuries would skyrocket. It's a battle of egos, the gov will lose I expect and the investment climate locally tarnished for years.
    26 Jan 2014, 10:14 AM Reply Like
  • EKL
    , contributor
    Comments (55) | Send Message
     
    Indonesia seems similar to 1970s Philippines. Marcos govt. forced companies to upgrade operations ie no export crude products...upgrade/ref... etc. in country. Soon after all cos. were "Rationalized". Nationalization took place just before Marcos departed the PI on USAF jet. Indonesia vs. FCX? Doesn't seem warm and fuzzy at any price.
    26 Jan 2014, 04:00 PM Reply Like
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