Boston, MA 07\/09\/2014 (wallstreetpr) \u2013 Presidential election in Indonesia is likely to make it difficult for Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX)<\/b> to conclude its talk with the government to resume copper export soon.<\/p>\n
Although the talks have already moved an important step with an agreement on a memorandum of understanding (MoU), the dispute is likely to be resolved only after a new president assumes office in October.<\/p>\n
Freeport, sitting on huge and low-cost copper deposits in Indonesia, is trying hard to find a common ground with the government so as to allow it resume copper export.<\/p>\n
Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) and other miners in Indonesia are disputing a move by the government to escalate tax on copper export. The other big U.S. miner in the country is Newmont Mining Corp (NYSE:NEM)<\/b>.<\/p>\n
Both companies claim the move by the government regard the new tax flies in the face of their original contracts.<\/p>\n
Dangling the carrot<\/b><\/p>\n
While Freeport is trying to pursue a friendly resolution to the export dispute, Newmont filed for international arbitration, a move that has attracted rebuke from the government that questions its commitment and goodwill to the talks.<\/p>\n
According to experts, Newmont (NYSE:NEM) is using a stick in the dispute while Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) is using the carrot.<\/p>\n
A lot to lose or gain<\/b><\/p>\n
The experts argue that there are good reasons why Freeport is committed to the talks with the government. They think that grandstanding like what can be seen at Newmont would only enrage hardliners in the government, yet that is not good for Freeport (NYSE:FCX) that has a lot to lose if the talks fail.<\/p>\n
Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) generates about 19 percent of its global revenue from copper production in Indonesia, as such, its operations in the country are important to the health of its balance sheet. That explains why the company has agreed with the government on the draft MoU, which now awaits the approval of the president and the cabinet.<\/p>\n
Newmont and Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) account for more than 97 percent of all copper production in Indonesia.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 07\/09\/2014 (wallstreetpr) \u2013 Presidential election in Indonesia is likely to make it difficult for Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) to conclude its […]<\/p>\n","protected":false},"author":32,"featured_media":27128,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[2174,2752,950,2753],"stock_ticker":[],"class_list":["post-27124","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-freeport-mcmoran-copper-gold-inc-nysefcx","tag-newmont-mining-corp-nysenem","tag-nysefcx","tag-nysenem","entry"],"acf":[],"yoast_head":"\n