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

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Freeport McMoRan (NYSE:FCX)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Freeport McMoRan Charts.
Freeport McMoRan (NYSE:FCX)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Freeport McMoRan Charts.