By Linda Silaen and Deden Sudrajat
JAKARTA, Indonesia--Indonesia approved new mining-contract terms
for PT Freeport Indonesia Friday, according to government
officials.
The new contract was agreed to by President Susilo Bambang
Yudhoyono.
It is expected to be signed Friday by Freeport and Director
General of Coal and Mineral Resources Sukhyar, Coordinating
Minister for the Economy Chairul Tanjung said.
Freeport-McMoRan Copper & Gold Inc. (FCX) said Wednesday it
will pay a $115 million assurance bond supporting its commitment
for to build an ore smelter. It will also pay reduced export duties
that will continue to decline as the smelter is built. It will pay
royalties of 4% for copper and 3.75% for gold. These were
previously 3.5% and 1%.
Indonesia banned ore exports in January and introduced taxes on
concentrate exports to force mining companies to build
smelters.
Write to Linda Silaen at linda.silaen@wsj.com
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