JAKARTA May 7 Newmont Mining Corp will
start cutting back production at its Batu Hijau copper and gold
mine in Indonesia from around June 1, the U.S. miner said in a
statement on Wednesday, if talks with the government remain
unresolved over export taxes.
Indonesia in January levied an escalating tax on copper
concentrate exports, but both Newmont and rival copper miner
Freeport-McMoRan Copper & Gold Inc - who together
account for 97 percent of Indonesia's copper output - said the
rule conflicts with contracts they signed with Indonesia that
exempt them from new taxes and duties.
"Batu Hijau's copper concentrate storage facilities will
reach capacity in late May, requiring an orderly ramp down of
operations," the firm said in its statement.
"Once the mine's copper concentrate storage is filled, PTNNT
(PT Newmont Nusa Tenggara) will move to cease mining and
Before the new export rules, Newmont forecast copper
concentrate output for 2014 at 110,000-125,000 tonnes.
Newmont usually supplies around 30 percent of its Indonesian
output to the country's only copper smelter, PT Smelting at
(Reporting by Michael Taylor; Editing by Randy Fabi and Tom