Newmont Mining Corp. (NEM), the largest U.S. gold producer, withdrew an arbitration claim against Indonesia, paving the way for the restart of production and export of copper from its Batu Hijau Mine.
Newmont will develop a smelter with Freeport-McMoRan Inc. (FCX)’s Indonesian unit and participate in supply agreements with two Indonesian companies that will process ore locally, Newmont said in a statement yesterday. The metal producers have been in talks with Indonesia since it banned raw ore shipments on Jan. 12 and put a tax on concentrates in an effort to spur companies to build domestic smelters.
Greenwood Village, Colorado-based Newmont declared force majeure on copper sales from Indonesia and filed for international arbitration in June, the company said.
Freeport said July 26 it would resume operations at its Grasberg copper operation, the world’s largest, and would restart exports this month after the Phoenix-based company agreed to pay higher royalties, build a domestic smelter and make other concessions.
Newmont rose 2 percent to $26.50 in New York yesterday. The shares have climbed 15 percent this year.
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