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Newmont withdraws arbitration request
PT Newmont Nusa Tenggara (NNT), a subsidiary of US-based Newmont Mining Corp
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T Newmont Nusa Tenggara (NNT), a subsidiary of US-based Newmont Mining Corp., has decided to withdraw its international arbitration request against the Indonesian government over its policy to ban the export of unprocessed minerals.
NNT spokesperson Rubi W. Purnomo said in a statement in Jakarta on Wednesday that the cancellation of its arbitration request at the International Centre for Settlement of Investment Disputes (ICSID) was based on the commitments of senior Indonesian government officials who agreed to reopen negotiations to complete a memorandum of understanding (MoU) between the two parties.
Rubi said the signing of the MoU would be followed by the commencement of production activities in the company's Batu Hijau mine, Antara reported.
He added that NNT was committed to continuing cooperation with the Indonesian government in the long term.
In July, NNT and its majority shareholder ' Dutch firm Nusa Tenggara Partnership BV ' filed an international arbitration request against the Indonesian government over the banning of concentrate exports.
NNT president director Martiono Hadianto said the export ban had forced the company to stop its production activities in Batu Hijau.
He said Indonesia's new policy on exports, export duties, and the raw copper ore export ban that would take effect in January 2017, was not in line with the work contract and bilateral investment agreement between Indonesia and the Netherlands.
In its arbitration request, NNT hoped it could secure an interval decision so it could export raw copper ores and its mining activities in Batu Hijau could return to normal.
NNT signed the work contract on Dec. 2, 1986. Fifty six percent of its total shares belong to Nusa Tenggara Partnership BV, which is owned by the Newmont Mining Corporation and the Nusa Tenggara Mining Corporation of Japan.
Other shareholders are PT Pukuafu Indah (17.8 percent), PT Multi Daerah Bersaing (24 percent) and PT Indonesian Masbaga Investama (2.2 percent). (ebf)
