Teck outlines detailed strategy for copper growth
The company plans to invest C$4.44 billion to C$5.41 billion ($3.2 billion to $3.9 billion) over four years to develop four key projects.
Indonesia has allowed two companies to resume exporting iron ore, lead and zinc concentrates, ending a ban imposed in January to improve returns on resources shipped out of southeast Asia’s largest economy.
The shipments, the first of their kind in six months, were allowed after Sebuku Iron Lateritic Ores (SILO) and Lumbung Mineral Sentosa agreed to pay the new 20% tax, Reuters reported.
Copper concentrate shipments, however, remain stranded as US-based copper mining giants Newmont (NYSE:NEM) and Freeport McMoRan Copper & Gold (NYSE:FCX) argue the new tax contravenes their original export contracts. But while Freeport-McMoRan has already reached a preliminary agreement with the government, Newmont’s Indonesian unit filed for international arbitration early this month, and it is risking to lose its mining license in the country if it doesn’t withdraw it soon.
The tax on concentrate exports rises to 60% in the second half of 2016, before a total concentrate export ban in 2017. It is part of the outgoing government’s drive to force miners to build smelters and processing plants in Southeast Asia’s largest economy.
5 Comments
John
To be accurate. There wasn’t a ban. Mining companies could export if they were prepared to pay the new and large tax. Many have resisted. The new tax hasn’t been removed. This story is about two very small locally owned mining companies and not representative of the wider sector at all. It’s a complicated topic, not an easy one for a reporter who hasn’t been following the situation to pick up. So probably best to delete this inaccurate article. No offense meant, but it is very misleading.
Jboy
Good on them, its good to see a country that wont allow itself to be exploited by the Mining companies
Richard
yes agreed very misleading – it is simply an extra tax to create an incentive to not export concentrate. Companies have to decide what to do as in a few years there is a total ban on concentrate exports anyway.
Ray
By imposing these restriction, the Indonesian government is crazy, it will kill the development of the mining industry. It’s not all about the majors. Small companies just can’t afford to build smelters, it’s totally uneconomic.
The one who control the space
I am indonesian and working at mining company , indomesia can’t export raw material since 10 jan 2014 , but if the material is processed using smelter, it is legal and export is 100% ok