Seeking Alpha

Freeport, Newmont move higher as Indonesia pushes for exports to resume

  • Indonesia has approved big increases in 2014 copper sales for local units of copper miners Freeport McMoRan (FCX +1.2%) and Newmont Mining (NEM +4.6%), as the country pushes for the companies to resume exports.
  • FCX appears to have received a go-ahead to resume copper shipments via a deal that would require it to build a smelter in exchange for a reprieve on Indonesia's new export tax.
  • The government approves targets for 10%-plus increases in FCX's copper concentrate sales and copper concentrate export sales from its Grasberg mine in Papua, and to raise copper concentrate sales from NEM's Batu Hijau mine in Sumbawa by 66% and hike export sales from the mine by 70%.
Comments (8)
  • jbc123
    , contributor
    Comments (78) | Send Message
     
    As an FCX shareholder I say the companies should maintain their export hold. The contracts have been breached, they're being shaken down, and should respond by seeing if the Indonesians can eat their copper ore. Six months to a year of no mining income for the labor and the government should achieve the desired result.
    28 Mar 2014, 04:10 PM Reply Like
  • BAHAMAS1
    , contributor
    Comments (2691) | Send Message
     
    jbc123
    Totally agree.

     

    Let the country "leaders" feed,house,clothe, etc. their citizens without the running of Grasberg and Batu Hijau.
    I think the citizenry would "speak up" to the government long before a year goes by.
    28 Mar 2014, 04:15 PM Reply Like
  • james.
    , contributor
    Comments (780) | Send Message
     
    If NEM does sell the 537,000 Tons of Copper in 2014 from its prolific mines in Indonesia as requested today by the Indonesian Government, which is a 66% increase from 2013 Tonnage of Copper sold by NEM, that would yield approximately $3.3 Billion of Revenue for NEM, which is approximately 40% of NEM revenues of $8 Billion in Gold Sales in 2014 that I expect on its 5.2 Million ounces of Gold sales. But if China, EU, and U.S.A. economic growth materializes as predicted by the IMF, huge profits would be obtained by NEM as Copper price rises towards $4 per pound, thus increasing those NEM Revenues to approximately $4 Billion . Wow ! March 28, 2014 at 9:12 pm PST.
    29 Mar 2014, 12:14 AM Reply Like
  • User 13639182
    , contributor
    Comment (1) | Send Message
     
    Very nebulous post. No mention of the elephant in the room - the tax situation. Hmm...
    30 Mar 2014, 02:55 AM Reply Like
  • james.
    , contributor
    Comments (780) | Send Message
     
    The taxes of Indonesian Government on those Copper Sales by NEM and FCX are only trial balloons, to see how far FCX and NEM are willing to go, which is not very far obviously ! FCX and NEM are in the driver's seat, because Indonesia must have those Revenues . March 30, 2014 at 5:48 a.m. PST.
    30 Mar 2014, 08:49 AM Reply Like
  • james.
    , contributor
    Comments (780) | Send Message
     
    User 13639182, FCX and NEM are in the driver's seat because the Indonesian Government must have those Revenues from Copper Sales. Therefore, those tax rates mentioned by the Indonesian Government are only trial balloons ! March 30, 2014 at 5:53 a.m. PST
    30 Mar 2014, 08:53 AM Reply Like
  • james.
    , contributor
    Comments (780) | Send Message
     
    The post by User 13639182 is highly dubious since it is obvious that the tax rates posted by the Indonesian Government are only trial balloons to see how far FCX and NEM are willing to go, which is obviously not very far, since Indonesia obviously needs Revenues based on very similar to what now exists in Statement of Work Contracts held by NEM for years ! Mar 30, 2014 at 6:10 a.m. PST.
    30 Mar 2014, 09:10 AM Reply Like
  • dbl410
    , contributor
    Comments (31) | Send Message
     
    There are at least three influences at work:
    Indonesia’s poor Current Account Balance,
    national elections due this summer,
    and the ghost of Sukarno’s anti-imperialist policies.
    30 Mar 2014, 11:49 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs