The CEO’s of major miners Freeport McMoRan Copper & Gold (NYSE:FCX), and Newmont Mining Corp (NYSE:NEM) are meeting with the Indonesian government on Friday with hopes to come to a quick resolution regarding export taxes in light of more stringent mineral export rules implemented in Indonesia this year. Freeport and Newmont, who make up 97 percent of Indonesia’s copper output, have argued that they should be exempt from the tax, but the government has tied the exemption to a show of commitment to building domestic smelters.
As quoted in the publication:
The tax is part of a government drive to force miners to build smelters and processing plants in Southeast Asia’s largest economy, but a lack of progress in resolving the dispute has led Newmont to declare force majeure and Freeport to slash output. ”We hope this happens quickly, everyone wants it to happen quickly,” said chief economics minister and billionaire businessman Chairul Tanjung, who is spearheading a new government push aimed at brokering a deal.