(Adds additional details)
By Yayat Supriatna
JAKARTA Aug 4 Freeport-McMoRan Inc's
Indonesia unit will resume copper concentrate exports by
Wednesday, the company's local CEO said on Monday, after it
resolved a six-month old tax dispute with the government.
Freeport, which runs one of the world's biggest copper mines
in Papua, would make an initial shipment of 10,000 tonnes to
China, Indonesia CEO Rozik Soetjipto said.
"It will be the first export shipment this year," Soetjipto
told Reuters in a text. "Hopefully all administration matters
can be finished according to the schedule."
Traders said the resumption of concentrate exports has been
largely priced in to the market.
Freeport clinched a deal with the Indonesian government late
last month to end the dispute over a controversial escalating
tax on metal concentrates that climbed to 60 percent by 2017.
The export tax was part of moves to force miners to develop
local mineral processing facilities, which would bring bigger
returns for the government from Indonesia's mineral resources.
However Freeport and Newmont Mining Corp, which
account for nearly all of Indonesia's copper exports, instead
halted exports from Indonesia, resulting in $1.3 billion in lost
copper concentrate shipments.
Indonesia's total mineral exports fell 27 percent in the
first half of 2014 on a year earlier due to the ban on mineral
ore shipments, the country's statistics bureau said on Monday.
Under a revised deal Freeport, which is expected to export
756,000 tonnes of copper concentrate in the second half of this
year, will pay a 7.5 percent duty on its copper concentrate
exports, which will decline as its spends to build a smelter.
The Freeport concentrate exports would be the first since
the new government rules on exports, but Newmont's attempts to
resolve the impasse over its copper exports remain in limbo.
The Denver, Colorado-based miner last month filed for
international arbitration over the new export rules that it said
were in breach of its contract, drawing a rebuke from the
(Reporting by Yayat Supriatna; Writing by Michael Taylor;
Editing by Randy Fabi and Richard Pullin)