Freeport, Newmont CEOs in Indonesia in bid to break export tax deadlock

The CEOs of Freeport McMoRan (FCX -1.2%) and Newmont Mining (NEM +1.2%) are both in Indonesia's capital, marking what might be a last-ditch effort to resolve the dispute over a mineral export tax before a new administration takes over in October.

FCX CEO Richard Adkerson is in Jakarta again less than a week after talks with Indonesia's new chief economics minister failed to make a breakthrough on the escalating export tax that has halted copper concentrate shipments since January.

NEM CEO Gary Goldberg, who was not involved in last week's talks, is in the capital to "demonstrate the company's seriousness in supporting the government's policy to increase domestic smelting."

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Comments (4)
  • Siwanoy
    , contributor
    Comments (717) | Send Message
    Don't like the sound of Goldberg's quote, and the market doesn't seem impressed by Adkerson's second trip either. Negotiating with a lame duck administrations over something of critical importance to both sides is not a risk-free place to be.
    12 Jun 2014, 12:51 PM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (10098) | Send Message
    Copper inventories will keep declining.
    12 Jun 2014, 03:00 PM Reply Like
  • james.
    , contributor
    Comments (1377) | Send Message
    In the meantime, NEM accrues much capital to the bottom line, as most of their Indonesian employees will receive a 80% pay-cut as the stored copper concentrate is sold of as per the NEM CoW. This will boosNEM EPS at least 5cents per share in Q2 of 2014, and then anothe 5 cents per share for Q3 and also Q4 20414 if the Force majure goes that long. However, it is lie\kely that the new Indonesian Administration coming in on Oct 2014 will negotiate properly with NEM in accxordance ewith the NEM Cow in effecxt for 20 years. June 12, 2014 at 12:55 pm PDT.
    12 Jun 2014, 03:55 PM Reply Like
  • akwils
    , contributor
    Comments (159) | Send Message
    For years Indonesia has been asking the miners for smelters. Now is the day of reckoning.
    13 Jun 2014, 08:44 AM Reply Like
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