Talks to resolve the mineral export tax disputes ended in a MoU between Indonesia and US miner Freeport-McMoRan Copper & Gold.
As soon as, the shares in the company increased to a new 52-week high and during Monday the share was trading at US$38.74 in New York. The agreement is taken as the major step in the Arizona based firm quest for restarting the copper exports from the country. Relating the exports, Indonesia has imposed new regulations on Jan 12 and introduced a progressive tax on concentrates.
Chairul Tanjung, Indonesia’s chief economic minister told that they were happy and expected that it would be finalized with a MoU. The draft MoU steel requires the approval of both the cabinet and outgoing President Susilo Bambang Yudhoyono. Not only Freeport, but its fellow miner Newmont Mining was also battled against the new export rules.
Last week, Newmont’s Indonesian unit filed for international arbitration as it failed to resolve the disputes. Due to the disputes, the company already declared force majeure last month at its Batu Hijau copper mine
Both Newmont and Freeport have previously disputed they should be excluded from the tax, which starts at 25% and will increase to 60% in the second half of 2016. Freeport and Newmont contributes 97 pct of Indonesia’s copper output