Jan 22 Newmont Mining Corp said on
Wednesday that it was considering legal action as well as other
options in Indonesia, where it is facing a new export tax.
Indonesia softened a proposed mineral ore export ban earlier
this month, but surprised miners by imposing a new tax on
exports of concentrate. Newmont exports concentrate from its
Batu Hijau copper and gold mine.
The U.S. miner's contract of work with Indonesia's
government specifies the company must pay a 35 percent corporate
The contract says Newmont is not subject to any other taxes,
duties or fees, company spokesman Omar Jabara said in an emailed
statement last week.
Newmont said on Wednesday that it was looking at how the tax
would affect its operations and would continue to "engage" with
Freeport McMoRan Copper & Gold Inc, which has a
similar agreement with the government of Indonesia, said earlier
on Wednesday that the new tax violated the deal.
But Freeport Chief Executive Officer Richard Adkerson said
he was confident the company would reach an agreement with the
government. Freeport has a "strong desire" to avoid
international arbitration, he added.
Indonesia's export ban aims to boost the Southeast Asian
country's long-term return from its mineral wealth by forcing
miners to process their ores domestically.
Miners such as Newmont and Freeport were given a reprieve
from the ban until 2016, but were slapped with an annually
escalating tax on their concentrate exports.
Shares of Newmont were down 2.3 percent at $24.25 on the New
York Stock Exchange, while Freeport fell 1.5 percent to $34.74.