Newmont considering legal action over new tax on the export of copper concentrate. Carlos Amarillo
It and another US major, Freeport McMoRan, have criticised the new tax, describing it as being in breach of their long-term contracts with the government. Other miners and potential investors will be watching developments in this developing economy, the fourth most populous in the world and tipped as one of the countries with the greatest potential for growth.
The tax was imposed on 12 January on exports of unprocessed mineral ores. Indonesia also exports bauxite, copper, nickel and other metals. Both Newmont and Freeport McMoRan are hoping to resolve the situation by discussion. One independent mining consultant said: 'If you go for international arbitration, your chances of successfully maintaining your operations in Indonesia are going to be slim, given the government’s control over licensing.' Source: Financial Times