Freeport CEO heads to Jakarta as export halt enters sixth month


Freeport McMoRan (FCX) CEO Richard Adkerson will be in Indonesia next week for talks to resolve the impasse with the government over exports from the miner's giant Grasberg copper and gold mine.

Indonesia's newly appointed chief economic minister says the issues would be resolved next week with the FCX management in Jakarta and that exports could restart soon.

FCX and Newmont Mining (NEM), which account for 97% of the country's copper output, say new taxes on copper concentrate exports conflict with their mining contracts that exempt them from new taxes and duties.

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Comments (8)
  • minwyhe
    , contributor
    Comments (115) | Send Message
     
    Time for FCX to step up to the plate if these taxes will help the indigenous people of Indonesia. As part of the settlement to ensure the increased taxes are helping those people with health care, food and needed life necessities, the agreement with the government should allow FCX to monitor where the money is used. Then FCX can report to the world exactly what happens with newly imposed taxes.
    30 May 2014, 09:43 AM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (10094) | Send Message
     
    Why do you think the higher taxes would help the people instead of lining the pockets of the politicians?
    30 May 2014, 10:31 AM Reply Like
  • james.
    , contributor
    Comments (1377) | Send Message
     
    Baloney "minwyhe". The newly appointed Indonesian Economic Chief has already stated that the dispute will be resolved in the upcoming talks next week ! In other words, the new Economic Chief is going to roll back the erroneous policy that forced exports to 0.00 for 6 months for both FCX and NEM ! May 30, 2014 at 8:52 a.m. PDT.
    30 May 2014, 11:53 AM Reply Like
  • The Rebel
    , contributor
    Comments (2844) | Send Message
     
    This is the 4th largest country in the world, and the 10th largest in terms of nominal GDP, yet they rank 181 in terms of healthcare expenditures (2.7% of GDP) and 143 in terms of education expenditures (2.8% of GDP). So where is most of that money going? They don't have the kind of defense budget we have, so that won't account for much.

     

    Transparency International's Corruption Perceptions Index ranks Indonesia in 2013 as 114 out of 177 in terms of how corrupt the government is, meaning that abuse of power, secret dealings and bribery are quite likely factors in where all the money has gone. If I were FCX, I would stand firm for no additional tax increase. The money would likely not go toward helping those indigenous people you speak about.
    30 May 2014, 10:36 PM Reply Like
  • shiboritate
    , contributor
    Comments (2) | Send Message
     
    What??? Minwhye, through taxes, profit share, tax on goods, etc Indonesia already makes more than 50% of every rupiah that FCX makes. FCX is the single largest tax payer in Indonesia. FCX is already doing all they can do. What more do you have in mind? They're a mining company, for goodness sakes, not a welfare ministry. It is up to Indonesia to distribute the money equitably. Good luck with that.
    1 Jun 2014, 07:37 AM Reply Like
  • c21vintage
    , contributor
    Comments (402) | Send Message
     
    This would seem to be very positive news for FCX yet the stock is tanking today with copper holding up? Price of oil is up over $100 and has been for some time now, FCX diversified into oil and the stock holders paid a price for that, yet now that we will be seeing substantial revenue there seems to be no appreciation in the price. I'm long and holding but it's about time we see some upside here...
    30 May 2014, 09:44 AM Reply Like
  • BSmith8592
    , contributor
    Comments (43) | Send Message
     
    I totally agree with with your assessment. I'm getting nervous about the state of the never ending upward trend in US equities am afraid a major downturn could seriously hurt the potential for this stock.
    30 May 2014, 03:48 PM Reply Like
  • Condors VVV
    , contributor
    Comment (1) | Send Message
     
    Indonesia is feeling the pinch. Unhappy Workers are being laid off.
    My gut feeling the stock reaches 38 - 40 by end of the year.
    Plus two more dividend checks. A major deal in the Gulf will
    happen next year.
    31 May 2014, 06:07 AM Reply Like
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