Aug 26 (Reuters) – Newmont Mining Corp has withdrawn its international arbitration filing against the Indonesian government, the industry minister said on Tuesday, in a possible sign of a breakthrough over its seven-month dispute that halted exports.
Newmont’s Indonesian CEO Martiono Hadianto said the mining giant had reached a “constructive solution” over new mining rules, and expects to resume production at its copper mine soon. He declined to give additional details and a company spokesman could not be immediately reached.
U.S.-based Newmont, which declared force majeure at its Batu Hijau copper mine in June and then filed for arbitration in July, is in dispute with the Indonesian government over an export tax imposed in January that the U.S.-based miner says conflicts with its mining contract.
“I heard Newmont’s lawyer has withdrawn the case a few days ago,” Indonesia’s Industry Minister Mohamad Hidayat told Reuters, adding that investment board chief Mahendra Siregar had confirmed the news.
Indonesia’s 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.
The government has yet to receive an official letter from Newmont, said Sukhyar, director-general of coal and minerals at the mining ministry, saying Newmont still needed to negotiate a Memorandum of Understanding before exports could be resumed.
Sukhyar added that Newmont had agreed to pay an export tax but further negotiations were needed over royalties.
Before the new export rules, Newmont forecast total copper in concentrate output would be between 110,000 and 125,000 tonnes from its Indonesian mine this year.
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