Newmont Mining Stops Output at Indonesian Copper Mine

U.S. based Newmont Mining has stopped copper output from its Batu Hijau mine in Indonesia following stalled talks with government officials.

The company has been hit hard by Indonesia’s new mining rules, which were imposed in January, banning mineral export along with higher tax on copper concentrate exports. The new rules have forced Newmont Mining to halt concentrate exports since mid-January.

Newmont said its storage facilities at the Batu Hijau mine have reached full capacity and it’s attempting to delay standing down its 8,000 employees and contractors ahead of a government meeting this week.

"Newmont Nusa Tenggara (PTNNT) today said that its concentrate storage facilities at Batu Hijau are now full, forcing the operation to halt processing activities and cease production of copper concentrate," Newmont said in a statement.

Newmont along with fellow U.S. miner Freeport McMoRan Copper & Gold Inc. are expected to hold talks this week with senior government officials in hope of ending the hiatus to copper shipments.

According to the statement from Newmont, “[The meeting] is intended to clarify the conditions under which copper concentrate exports will be permitted. The company is communicating with employees about the situation and most are prepared to be on standby at reduced pay, should that become necessary.”

After a slower first-quarter economic growth and a swelling trade deficit in April, the risk of massive job layoffs could add to pressure on the Indonesian government to find a solution to the stoppage.

Newmont Mining and Freeport McMoRan account for 97 percent of Indonesia’s copper output. The two companies are still shipping out some refined copper, but have immobilized exports of copper concentrate after objecting to the newly imposed tax rule.

Before the newly imposed rules, Newmont’s forecast for copper was at 110,000-125,000 tons in 2014. 

View the entire statement from Newmont Mining Corporation here: http://www.ptnnt.co.id/ptnnt-provides-update-on-batu-hijau-operations.aspx