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Newmont Prepares Legal Action Against Indonesia

24 January 2014 07:36 WIB

TEMPO.CO, Jakarta - Newmont Mining Corporation revealed that it was preparing a legal action to face a new raw mineral export tax imposed by the Indonesian government. The tax was announced by the government earlier this month, as mandated by the Laws on Mineral and Coal.

The initial intention was only to ban mineral exports. However, the government later decided to enact an export tax on mineral concentrates.

As reported by Reuters on January 22, 2014, Newmont’s contract with the Indonesian government specifies that Newmont is subject to a 35-percent income tax. Newmont spokesperson Omar Jabara stated that, in accordance with the contract, Newmont is not subject to any other taxes, duties or fees. He said that the company was looking at how the new tax would affect its operations and would continue to “engage” with the Indonesian government.

The mineral export ban was meant to provide an added value for the country, where minerals were supposed to be processed domestically. Mining companies, such as Newmont and Freeport, were given a reprieve from the ban until 2016, but were gradually taxed on their concentrate exports.

REUTERS | ABDUL MALIK



Jokowi Aims to Complete Negotiation on 61% Freeport Share by June

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