Indonesia’s government and Freeport McMoRan Inc on Thursday failed to reach a deal on extending the U.S. mining giant’s six-month export permit, potentially halting shipments from the country’s massive Grasberg copper and gold mine.
An export stoppage would deal a blow to Freeport’s profits and deny the Indonesian government desperately needed revenue from one of its biggest taxpayers. It could also buoy global copper prices, which have slipped 3 percent so far this year on worries about oversupply.
Freeport’s six-month export permit for its Indonesian unit expired on Thursday and it was unclear how soon a new one would be issued as the two sides have yet to resolve a government demand that the U.S. firm first pay a $530 million deposit.
