Newmont Considers Legal Action against Indonesia Tax

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(Reuters) – On Wednesday, Newmont Mining Corp said that it was contemplating lawful activity as well as other choices in Indonesia, where it is facing a new export levy.

Indonesia softened a proposed inorganic ore export ban previous this month, but shocked miners by enforcing a new levy on trade goods of focus. Newmont trade goods concentrate from its Batu Hijau copper and gold mine.

The U.S. miner’s contract of work with Indonesia’s government identifies the company should pay a 35% business earnings levy.

The agreement says Newmont is not subject to any other taxes, obligations or fees, business spokesman Omar Jabara said in an emailed declaration last week.

Newmont said on Wednesday that it was looking at how the tax would affect its procedures and would extend to enlist” with Indonesia’s government.

Freeport McMoRan Copper & Gold Inc, which has a alike agreement with the government of Indonesia, said previous on Wednesday that the new levy contravened the deal.

But Freeport head Executive Officer Richard Adkerson said he was assured the business would reach an affirmation with the government. Freeport has a “strong desire” to bypass international arbitration, he supplemented.

Indonesia’s export ban aspires to boost the Southeast Asian country’s long-term return from its mineral riches by compelling miners to process their ores domestically.

Miners such as Newmont and Freeport were granted a reprieve until 2016, but were slapped with an every year escalating levy on their concentrate trade goods.

Shares of Newmont were down 2.3% at $24.25 on the New York supply Exchange, while Freeport dropped 1.5% to $34.74.