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Freeport to Negotiate with Government

23 January 2014 15:04 WIB

TEMPO.CO, Arizona - American mining company, Freeport McMoran Copper & Gold Inc, stated that it would fight for its right in Indonesia following the enactment of a new mineral export tax. Freeport CEO Richard Adkerson said he was optimistic to resolve the misunderstanding with the government outside without involving the international arbitration.

"We have a strong desire not to go to international arbitration. The much more attractive course of action would be … to find a mutually agreeable resolution to it with the government," he said, as quoted from Reuters today.

Adkerson also said that the enactment of the new regulation has violated the contract between the company and Indonesian government signed in 1991. In the contract, it is mentioned that the company would not be subjected to any new taxes or fees.

Freeport said the government is currently halting its approval of the company’s export this year. The condition would cause Freeport to postpone the production of 40 million pounds of copper and 80,000 ounces of gold a month until the issue was resolved.

However, Freeport has not provided detailed information about how much it costs the company due to the export delay. It has guaranteed that it was in intensive communication with the customers.

Adkerson said he would not speculate on the loss because he is confident to find a resolution with the government.

REUTERS | ABDUL MALIK




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