Boston, MA 06/03/2014 (wallstreetpr) – Newmont Mining Corp (NYSE:NEM) announced that it had brought the production of copper concentrate at its Batu Hijau mine based in Indonesia to a standstill. The company undertook this action as an impasse continues over contentious mining rules that have suspended concentrate exports since mid-January.
Storage Facilities Complete
Newmont Mining Corp (NYSE:NEM) stated that its storage facilities at the mine were full after the almost five months export halt. The company also said that it had deferred the stand-by status of its 8000 contractors and workforce in advance to a government meeting this week.
Pressure On Indonesian Government
After softer exports added to sluggish economic growth in the first quarter as well as a bulging trade deficit in April, the prospect of widespread job layoffs could exert pressure on the Indonesian Government in order to seek a solution to the confrontation.
Freeport and Newmont
Newmont Mining and its fellow mining company McMoRan Copper & Gold Inc, based in the U.S., account for 97% of total copper output of Indonesia. The two miners are still shipping out some refined copper. However, the two firms have halted exports of copper concentrate after giving objection to the implementation of a new increasing tax.
The Firms To Hold Talks
Newmont Mining Corp (NYSE:NEM) and Freeport are assumed to conduct discussions with experienced government officials this week with the anticipation of contravening the pause to copper shipments. The newly hired chief economics minister and billionaire businessman, Chairul Tanjung, stated that he would reconsider the mining export rules as well as expectations that exports can recommence.
Newmont Nusa Tenggara (PTNNT), on June 3, 2014, stated that its concentrate storage facilities at Bata Hijau are full currently, compelling the activities to stop the progress of processing operations and halting the production of copper concentrate.
Freeport stated that it had reduced production at its Grasberg mine in Papua, Indonesia, by almost 60%. As a matter of fact, Grasberg mine is the fifth-largest copper mine in the world.
