Newmont Backs Down From Indonesian Arbitration

Reuters reported today that Newmont Mining (NYSE:NEM) has withdrawn its international arbitration filing against the Indonesian Government. Officials gave indication of a possible “constructive solution” to the seven-month dispute, according to Reuters.

As quoted in the publication:

The government has yet to receive an official letter from Newmont, said Sukhyar, director-general of coal and minerals at the mining ministry, adding that Newmont still needed to negotiate a MoU before exports could be resumed.

Sukhyar said Newmont had agreed to pay an export tax but that further negotiations were needed over royalties.

Chief Economics Minister Chairul Tanjung is expected to make an announcement on Newmont’s arbitration on Wednesday, said Susyanto, the director of the law bureau for the mines ministry.

Newmont’s Indonesian CEO, Martiono Hadianto, said:

The decision to discontinue and withdraw arbitration comes after commitments from senior government officials to open formal negotiations to conclude a Memorandum of Understanding (MoU) with PTNNT (PT Newmont Nusa Tenggara) upon cessation of the arbitration claim. Signing of a MoU with the government would be followed by the safe ramp-up of copper concentrate production and exports from Batu Hijau.

Click here to read the full Reuters article.