Indonesia threatens takeover of Newmont mine if output stays shut

Newmont Mining (NEM +0.4%) risks its Indonesian mining license being taken over by a state-owned firm if it does not resume copper production, Indonesia's government warns in a hardening of its stance.

The mining ministry earlier this week said it could terminate NEM's mining contract in response to the halt in production and the filing of legal arbitration over the country's new export rules.

The current government has only three months left in office, and the probable next president has signaled a more conciliatory approach to the contract dispute with NEM and Freeport McMoRan (NYSE:FCX).

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Comments (3)
  • Drumstar
    , contributor
    Comments (27) | Send Message
    Stick to your guns, Newmont!
    17 Jul 2014, 11:47 AM Reply Like
  • james.
    , contributor
    Comments (1377) | Send Message
    Joko will soon be taking over the Presidency of Indonesia , according to the Media Reports which state that he has a 7% lead in the President vote over the former General , his adversary. Joko is pro-business since he was a business man himself and has vowed to create jobs for the working class people, and thus will be very friendly to NEM so Copper Production can be expanded by hiring more workers, etc.!. Joko will thus improve relations with NEM, and will respect the CoW (Contract of Work) signed in 1986. The CoW gives NEM the authority to do the Force Majeure when its storage bin of Copper Concentrates became full, and begin paying only 20% of usual wages to workers at their Indonesian Copper Mine at that time, while shipping to the local Copper Refinery its Copper Concentrates through 2014 to create revenue for NEM. This action taken by NEM Management is likely to add about $0.10 per share of profit for NEM to its Q3 and also to its Q4 EPS for 2014. The Mean Analysts' EPS Estimate for Q2 for NEM is about $0.23, and about a steady improvement thereafter during 2014; therefore, this $0.10 EPS boost will increase NEM EPS by about 33%, with a similar increase in NEM share price to be expected! Look to it ! July 17, 2014 at 2:34 pm PDT.
    17 Jul 2014, 05:35 PM Reply Like
  • james.
    , contributor
    Comments (1377) | Send Message
    I strongly recommend an outright purchase of NEM today, now that Mr. Joko Widodo has been elected the new President of Indonesia today by 53% of the vote cast. Why ? Mr. Joko Widodo is strongly pro-business, as he was a Business Man himself before being elected Governor of Jakarta in 2012; therefore, Mr. Joko Widodo will change the current law in Indonesia which caused NEM to institute a Force Majeure at its huge Copper Mine in Indonesia in early June 2014 on its Copper Concentrate Production in accordance with its CoW (Contract of Work) signed in 1986, and then file for Arbitration as per the NEM CoW. This Force Majeure allows NEM to pay its Indonesian Workers only 20% of their normal pay until the end of 2014 when all stored Copper Concentrate will have been shipped to the local Copper Refinery. This brilliant NEM Force Majeure will add approximately $0.10 EPS to the NEM Q3 and Q4 Earnings Reports. Look to it ! July 22, 2014 @ 10:41 a.m. PDT.
    22 Jul 2014, 01:41 PM Reply Like
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