Reuters reported today that Newmont Mining Corp. (NYSE:NEM) has stated that it will invoke force majeure at the Batu Hijau copper mine in Indonesia.
The declaration comes as Newmont and fellow miner Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) maintain that they are unable to pay new export taxes on copper concentrate at current profit levels. The Indonesian government has recently been stepping up efforts to resolve issues surrounding the export of mineral concentrate resulting from the implementation of new export rules in January.
As quoted in the publication:
A declaration of force majeure, which literally means ‘higher power’, allows certain terms of an otherwise legally binding contractual agreement to be ignored. Newmont’s move came after the Indonesian government launched a drive this week to force a breakthrough in the dispute, which has contributed to slower economic growth.