By Linda Silaen
JAKARTA,Indonesia--Indonesia and PT Freeport Indonesia have
agreed on new mining contract terms, paving the way for the
issuance of an export license for the local unit of the U.S. mining
giant, government officials said Monday.
"We received the report from the negotiating team who conveyed
good news that Freeport have agreed," on the all points that they
negotiated, the Coordinating Minister for the Economy Chairul
Tanjung told reporters after a meeting with other ministers about
negotiations with the local mining arm of Freeport-McMoRan Copper
& Gold Inc.
Mr. Tanjung said that he will report the results of the
agreement to President Susilo Bambang before the two parties sign
an agreement.
He didn't disclose the details of the agreements.
Meanwhile, Trade Minister Muhammad Lutfi, who attended the
meeting, said that his ministry will issue the permit for Freeport
Indonesia to resume exports of copper concentrate.
Indonesia, a major copper producer, banned ore exports in
January and introduced taxes on mineral concentrate exports. The
goal was to force mining companies to build smelters and refine
their minerals in Southeast Asia's largest economy.
When companies refused to pay the new taxes, however, the
government said it would consider lowering the tax rates for
companies that deposit funds toward building new smelters.
Freeport Indonesia's Chief Executive Rozik Soetjipto has said in
the past that they would build a smelter, Freeport-MacMoran agreed
to sell a 30% stake in Freeport Indonesia to Indonesian investors,
and reduce the Indonesian unit's mining concession size in the
easternmost province of Papua.
write to Linda Silaen at linda.silaen@wsj.com
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