Newmont Stops Producing
4 June 2014 06:16 WIB
TEMPO.CO, Jakarta – Chief of the Investment Coordinating Board (BKPM), Mahendra Siregar, regretted mining company Newmont Nusa Tenggara's decision to stop all production activities unilaterally.
According to Mahendra, the production halt is related to the ban on mineral exports. "They are unable to export so they had to stop production," he said on Tuesday, June 3.
Mahendra said the government did not receive an official notification from the American miner about the termination. The government, he said, heard the news from the company's workers union.
As of Tuesday afternoon, the renegotiation on mineral duties between the government and US miners Freeport and Newmont was still taking place. Mahendra said both companies are unable to export their goods as no agreements have been met.
"We remain hopeful that the renegotiation will be completed within this week," said Mahendra.
Deputy Finance Minister Bambang Brodjonegoro said the government is still has not determined the amount of export duty.
"We already knew [about Newmont's production halt]. No more stories about lowering [the duties]—we are finalizing the agreement, and Newmont must abide to government rules," he said.
JAYADI SUPRIADIN