Photo by: Bloomberg
TORONTO (miningweekly.com) – Global miner Newmont on Tuesday said its Indonesian subsidiary PT Newmont Nusa Tenggara (PTNNT) would drop international arbitration proceedings against the country’s government, based on signs that the government was open to start formal negotiations to conclude a memorandum of understanding (MoU) to end its ban on ore exports.
Newmont, which declared force majeure in June at its Batu Hijau copper mine, was in dispute with the Indonesian government over an escalating export tax imposed in January that the US-based miner argued conflicted with its mining contract.
PTNNT stated that its majority shareholder, Nusa Tenggara Partnership BV, requested it to discontinue and withdraw the arbitration claim filed with the International Centre for Settlement of Investment Disputes relating to the export restrictions that halted production at the Batu Hijau copper and gold mine.
Newmont added that senior government officials had committed to open formal negotiations to conclude a MoU with PTNNT if it halted the arbitration claim.
The company explained that it expected to start ramping up operations at Batu Hijau soon after signing the MoU, with exports to resume thereafter.
US diversified miner Freeport-McMoRan clinched a deal with the Indonesian government late last month to end a six-month dispute over the controversial escalating tax on metal concentrates that resulted in all ore exports at one of the world's biggest copper mines being halted.
Early this month, the Arizona-based firm said it would resume copper concentrate exports with an initial shipment of 10 000 t to China.
Newmont’s NYSE-listed stock traded 2.14% higher on Tuesday at $26.54 apiece.