Newmont reaches deal to resume Indonesian copper exports

|About: Newmont Mining Corporation ... (NEM)|By:, SA News Editor

Newmont Mining (NEM -2.4%) has reached a tentative agreement to resume exporting copper concentrate from Indonesia as early as this week, the government says.

According to a top mining industry official, NEM will pay an export tax of 7.5% on its copper concentrate, which is— the same rate Freeport McMoRan (NYSE:FCX) negotiated early and significantly lower than the government originally asked; NEM also will increase royalties to 3.75% from 1% for gold, to 4% from 3.5% for copper, and to 3.25% from 1% for silver.

Although an agreement has been reached in principle, the deal still needs to be approved by several government officials, including the chief economics minister, before an MoU is signed by both parties.