Newmont Mining Says Indonesia Operations May Halt June 1

Reuters reported that Newmont Mining’s (NYSE:NEM) is running low on space for the storage of copper concentrate at its Batu Hijau project in Indonesia, and will need to stop production this June if permit and tax issues cannot be resolved with the Indonesian government. According to Reuters, roughly 30 percent of Newmonts output goes to Indonesia’s only current copper smelter, but the rest of its concentrate output currently has to stay put due to the country’s mineral export ban.

As quoted in the publication:

Indonesia in January levied an escalating tax on copper concentrate exports, but both Newmont and fellow miner Freeport-McMoRan Copper & Gold Inc – who account for 97 percent of Indonesia’s copper output – say the rule conflicts with contracts they signed with Indonesia that exempt them from new taxes and duties.

Click here to read the full Reuters article.