LME clearing house unveils reforms, to triple member capital requirements
The exchange also said that LME Clear would reduce the amount members have to contribute towards its default fund.
Mining giant Freeport has obtained a license to ship copper concentrate from its Indonesian operation until May 2024, but may contest new government rules on export duties.
Exempted from the country’s ban on raw mineral exports, Freeport Indonesia was granted an export license on July 24 for 1.7 million metric tons of copper concentrate, the company said in a US SEC filing on Thursday.
Indonesia in June banned outbound shipments of raw minerals to attract investment into its metals processing industry and boost revenue, but said it would allow several companies including Freeport to continue exporting until mid-2024 to give them time to finish building smelters.
But the government imposed new duties on products shipped by these companies, which Freeport Indonesia might contest, according to the filing.
It said that under Freeport Indonesia’s 2018 special mining license, no duties are required after its smelter is at least half-complete.
“In March 2023, the Indonesia government verified that construction progress on the Manyar smelter exceeded 50% and Freeport Indonesia’s export duties were eliminated effective March 29, 2023,” the filing read.
The Indonesian unit is “continuing to discuss the applicability of the revised regulation with the Indonesia government and will contest, and seek recovery of, any assessments,” it added.
A finance ministry regulation issued last month stated that exports of copper concentrate would continue to incur duties at 5% to 10% rates, even if companies’ smelter construction was beyond 50%.
(By Fransiska Nangoy; Editing by Kanupriya Kapoor)
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