By Dow Jones Business News,
July 07, 2014, 03:47:00 AM EDT
By Linda Silaen
JAKARTA,Indonesia--Indonesia and PT Freeport Indonesia have agreed on new mining contract terms, paving the way for
the issuance of an export license for the local unit of the U.S. mining giant, government officials said Monday.
"We received the report from the negotiating team who conveyed good news that Freeport have agreed," on the all points
that they negotiated, the Coordinating Minister for the Economy Chairul Tanjung told reporters after a meeting with
other ministers about negotiations with the local mining arm of Freeport-McMoRan Copper & Gold Inc.
Mr. Tanjung said that he will report the results of the agreement to President Susilo Bambang before the two parties
sign an agreement.
He didn't disclose the details of the agreements.
Meanwhile, Trade Minister Muhammad Lutfi, who attended the meeting, said that his ministry will issue the permit for
Freeport Indonesia to resume exports of copper concentrate.
Indonesia, a major copper producer, banned ore exports in January and introduced taxes on mineral concentrate exports.
The goal was to force mining companies to build smelters and refine their minerals in Southeast Asia's largest economy.
When companies refused to pay the new taxes, however, the government said it would consider lowering the tax rates for
companies that deposit funds toward building new smelters.
Freeport Indonesia's Chief Executive Rozik Soetjipto has said in the past that they would build a smelter, Freeport-
MacMoran agreed to sell a 30% stake in Freeport Indonesia to Indonesian investors, and reduce the Indonesian unit's
mining concession size in the easternmost province of Papua.
write to Linda Silaen at email@example.com
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