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Newmont Could Lose Indonesian Mine to State Run Miner
Jul. 18, 2014 08:55AM PST
Base Metals Investing Reuters reported today that Indonesia is threatening to give Newmont Mining Corp.’s (NYSE:NEM) mining license in that country to state run miner Antam. Newmont declared force majeure on shipments last month, stating that its storage facilities were at capacity.
Reuters reported today that Indonesia is threatening to give Newmont Mining Corp.’s (NYSE:NEM) mining license in that country to state run miner Antam. Newmont declared force majeure on shipments last month, stating that its storage facilities were at capacity. Experts have said that Newmont would have a “good case” in international court, according to Reuters.
As quoted in the publication:
The move represents a hardening of the stance of Indonesia’s outgoing government. The mining ministry earlier this week said it could terminate Newmont’s mining contract in response to the miner stopping production and filing legal arbitration over the export rules. The developments mark the latest twist in the dispute between Indonesia and U.S. miners Newmont and Freeport-McMoRan Inc that has led to a halt in copper concentrate shipments from Southeast Asia’s biggest economy.