Jakarta. Newmont Nusa Tenggara will be allowed to resume shipping exports of ore concentrates once it has completed a written commitment and put in a deposit to build a smelter, according to Indonesia’s energy and mineral resources minister.
Energy Minister Jero Wacik said that the collateral, which amounts to $25 million, is an important requirement, showing proof of Newmont’s commitment in building a smelter. Newmont plans to build a smelter with Freeport Indonesia, which also cannot ship ore following the Jan. 12 implementation of a ban on ore exports. Mining companies are allowed to ship ore once they commit to building smelters.
“Newmont wants to build a smelter with Freeport. But it has yet to pay the collateral. The sooner they pay it, the faster they get the permit to export,” said Jero Wacik, energy and mineral resources minister, in Jakarta on Tuesday.
“Five years ago, Newmont wanted [to pay the collateral], but it did not build a smelter. That’s why we want to add collateral to the commitment,” Jero said. “If they complete the requirements, then we will issue their export permit.”
Freeport Indonesia chief executive Rozik Soetjipto was quoted by Reuters as saying on Tuesday that the company and the government have made “a lot of progress and we have moved forward in the renegotiation process, but there are still some processes left.”
By Rangga Prakoso on 03:08 pm Jun 17, 2014
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