By I Made Sentana 
 

JAKARTA, Indonesia--Failure to secure an export permit has forced a halt to copper-concentrate production at Newmont Mining Corp.'s (NEM) Indonesian unit's Batu Hijau mine, it said Tuesday.

The company hopes a ministerial meeting this week will clarify rules for exporting concentrates, PT Newmont Nusa Tenggara spokesman Rubi Purnomo said in a news release. Employees remain at work pending news from the meeting, he said.

A government-imposed export tax of between 20% and 25% rising to 60% by 2016 on concentrates is a breach of contracts, Newmont Nusa Tenggara and competitor Freeport-McMoRan Copper & Gold Inc.'s (FCX) local unit PT Freeport Indonesia have said.

Meanwhile, "copper concentrate storage facilities at Batu Hijau are now full forcing the operation to halt processing activities and cease production of copper concentrate," Mr. Purnomo said. The mine is on Sumbawa Island in West Nusa Tenggara province.

Indonesia banned raw-mineral exports in January in a bid to force mining companies to process the ore domestically to boost value. But mining companies say they can't compete with cheaper smelters in places like China.

Both Freeport Indonesia and Newmont Nusa Tenggara have agreed to supply copper concentrates to two companies that will build local smelters.

Indonesia is a large producer of nickel ore, bauxite, tin, copper and thermal coal.

Write to I Made Sentana at i-made.sentana@wsj.com

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