They must build a smelter and pay a smelter guarantee."Jakarta (ANTARA News) - Indonesias minister of energy and mineral resources Jero Wacik said here Thursday that the government was ready to take on PT Newmont Nusa Tenggara which has challenged the ban imposed on minerals export.
He said the government had reputed lawyers to deal with PT Newmont Nusa Tenggaras move to take drag Indonesia to the international arbitration court on the issue of this ban, adding that "the case would be handled by the minister of law and human rights."
He said the government would continue implementing Law Number 4 of 2009 on coal and mineral mining that bans export of concentrate beginning in 2014.
"This is about defending the sovereignty of the state. We do not like to be pressured by Newmonts threat of arbitration," he said.
Jero expressed regret over PT Newmonts decision to take the case to the arbitration court, saying "they must not have done it as we are still negotiating."
He said PT Newmonth must abide by laws in Indonesia.
He said Newmonth still refuses to pay 3.75 percent in royalty for gold and four percent for copper that it is mining, in line with the governments regulation.
"They must build a smelter and pay a smelter guarantee," he said.
PT Newmont Nusa Tenggara and its majority shareholder, Nusa Tenggara Partnership BV, a Dutch legal entity, have filed a case in an international arbitration court against the Indonesian government following a ban on concentrate exports.
PT Newmont Nusa Tenggara president director Martiono Hadianto said the ban on export had brought production at the Batu Hijau mining field to a halt, causing problems and economic losses to workers and other parties.
He said the imposition of a new regulation, which is an export tax, and implementation of the ban on export of copper concentrate starting in 2017 went against the working contract and bilateral investment agreement between Indonesia and the Netherlands.
With regard to its lawsuit filed with the International Center for the Settlement of Investment Disputes, PT Newmont Nusa Tenggara hopes it will get an injunction, allowing it to carry out copper exports and mining activities at Batu Hijau.
PT Newmont Nusa Tenggara signed the 4th generation working contract on December 2, 1968.
A total of 56 percent of the companys shares is held by Nusa Tenggara Partnership BV which is controlled by Newmont Mining Corporation and Nusa Tenggara Mining Corporation of Japan.
Other shareholders are PT Pukuafu Indah holding 17.8 percent, PT Multi Daerah Bersaing 24 percent and PT Indonesia Masbaga Investama 2.2 percent.
(T.K007/Uu.INE/H-YH/KR-BSR/A014)
Editor: Priyambodo RH
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