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T Newmont Nusa Tenggara, a subsidiary of US-based Newmont Mining Corp., aims to soften its stance against Indonesia'€™s ore export ban as copper miner PT Freeport Indonesia is set to resume shipments on Wednesday.

Newmont, which ceased operations at the Batu Hijau mine in West Nusa Tenggara in June, filed an arbitration lawsuit last month against the export ban and the hefty export duties set on semi-finished products such as copper concentrate.

The lawsuit has strained relations between the Indonesian government and the mining company.

On Tuesday, Coordinating Economic Minister Chairul Tanjung revealed he had received a letter from Newmont stating that the mining company wanted to resume talks on the issue.

Newmont, however, stated in its letter that it also wanted to continue the arbitration process.

'€œThat is nonsense. If it [Newmont] wants to negotiate, it must start by withdrawing the lawsuit,'€ Chairul said.

'€œI already have a presidential decree that would allow me to sue Newmont. If the company shows no goodwill, don'€™t blame me if I have to move beyond the measures that are expected,'€ he added.

Newmont president director Martiono Hadianto could not be reached for comment on Tuesday.

Newmont discontinued operations at the Batu Hijau in June after reaching storage capacity, as concentrates due for export continued to stockpile under the ban. Since the ore export ban took effect on Jan. 12, no concentrate has been shipped.

Under the ore export ban regulation, the government permits semi-finished products to be sold overseas until 2017, as long as mining companies display a commitment to building smelters and paying export duties ranging between 20 to 60 percent. The requirements have been criticized by mining players.

Newmont rejected the decision by filing a lawsuit with the International Center for the Settlement of Investment Disputes (ICSID) a month after it announced it had ceased production.

The government has since denounced Newmont'€™s legal challenge, saying it revealed a lack of good faith in Indonesia. When the arbitration was filed, the government and Newmont were in talks to renegotiate the mining contract of work (CoW). The renegotiation had focused on six main issues: royalty adjustment; mining size; continuity of operation post-contract expiry; obligation to process some minerals in domestic smelters; the use of local goods and services; as well as the involvement of other mining companies.

The government has also threatened to file a counter lawsuit with a different judicial body should the company rejects to withdraw its lawsuit at ICSID.

As Newmont is still struggling to recommence its exports, Freeport Indonesia, a subsidiary of Freeport McMoRan Copper & Gold Inc., has progressed in acquiring permission to export mineral concentrates after signing an agreement declaring its commitment to building a smelter in the country and reducing export duties to 7.5 percent.