TEMPO.CO, Jakarta - Coordinating Minister for Economic Affairs Chairul Tanjung assured that no employees of Newmont Nusa Tenggara will be fired, as there would be no need for the company to cut its production.

Chairul said the US-based copper and gold mining company will immediately receive an export duty reduction, now that it has promised to pay a US$25 million financial guarantee to proof its commitment to build smelters for mineral processing.

"The issue of layoffs and production halt can be resolved," Chairul said in a press conference after meeting with other ministers about minerals held at Coordinating Ministry for Economy office on Wednesday evening, May 28.

The meeting, which was also attended by Freeport Indonesia director Rozik Soetjipto and Newmont's president director Martiono Hadianto, resulted in a decision that Freeport will build a smelter. Meanwhile, Newmont will be using the smelter developed by Freeport and Aneka Tambang with smaller production capacity.

Previously, Martiono Hadianto said his company plans to fire a number of its employees in early June 2014, as the result of its decision to lower production. Newmont opted to cut production because they have not received the government's permission to export copper concentrates.

ANGGA SUKMA WIJAYA