Newmont files for arbitration over Indonesia mining export restrictions

Newmont Mining (NEM) files for international arbitration against Indonesia's government seeking "interim, injunctive relief" from mining export restrictions.

The filing comes after NEM halted operations at its Batu Hijau copper mine and declared force majeure last month after the country banned ore exports in January and introduced controversial taxes on exports of mineral concentrates.

NEM and Freeport McMoRan (FCX), which control the two largest copper producers in Indonesia, say they should be exempt from the tax, which kicks in at 25% and rises to 60% in H2 2016 before a total concentrate export ban in 2017.

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Comments (4)
  • Jack Cumming
    , contributor
    Comments (161) | Send Message
    Ain't investing in "emerging markets" great??? Ehh........not so much!
    1 Jul 2014, 08:18 AM Reply Like
  • Siwanoy
    , contributor
    Comments (717) | Send Message
    It's messy, but I'm in in this case. I'm a bit thankful it's through FCX rather than Newmont. If I were the FCX CEO I'd be less concerned about the mine lease extension and rather have an agreement setting up the new smelter as the required destination of internal ore production for a specified number of years. That is sure money. The mine is transitioning to underground and that's expensive.
    1 Jul 2014, 10:16 AM Reply Like
  • sinedo
    , contributor
    Comments (501) | Send Message
    There is a lot of political posturing going on that, hopefully, will end soon.


    "...The next Indonesian presidential election will be held in July 9, 2014. It will be Indonesia's third direct presidential election, and will elect a president for a five-year term. Incumbent president Susilo Bambang Yudhoyono is constitutionally barred from seeking a third term in office..."
    The next President will have to get realistic. Attacking the rich white men who exploit the poor Indonesians, isn't going to produce economic wealth for the people.
    1 Jul 2014, 12:11 PM Reply Like
  • james.
    , contributor
    Comments (1377) | Send Message
    NEM profits will increase by about $.10 per share per quarter for the rest of 2014 because their CoW allows NEM to pay only 20% of normal wages to their Indonesian employees all throughout the current Copper Force Majure imposed by NEM; NEM has enough Copper Concentrate production stored to ship to the local Indonesian refinery throughout the rest of 2014. Both of these all-important facts were entirely omitted by the above poorly written article. To only divulge part of the all-important facts is obviously an incomplete treatment of the pertinent subject material.


    Additionally, notice that Copper prices are moving up strongly since NEM imposed its Force Majure in mid-June 2014; rising Copper prices due to reinvigoration of China economy announced today, which surprised most analysts, is also bullish for copper, as China consumes 40% of the world's Copper usage ! Obviously, if Copper can rise back up to $4 per pound by Oct 2014 from $3.20 presently, that would accrue even more than $0.10 per share per quarter to the bottom line of NEM.


    If the newly elected Indonesian President in mid-July 2014 appoints an Economic Minister who has better skills than the present Indonesian Government officials, they will likely bend to the will of NEM who has the legal CoW of 1986 which will allow the NEM Lawyers to win their "international arbitration" they filed today. So Indonesia would then avoid the embarrasment of an inevitable NEM Court Victory!
    July 1, 2014 at 11:01 a.m. PDT.
    1 Jul 2014, 02:04 PM Reply Like
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