JAKARTA (Yosefardi) – Government of Indonesia and PT Newmont Nusa Tenggara, a copper-gold mining company in West Nusa Tenggara, have finally reached a deal on the mining contract renegotiation.
Both parties opt to make a deal after Newmont deciding to withdrawn its international arbitration lawsuit against Indonesia related to the cooper concentrate export ban.
Both parties have agreed on 6 points for the Memorandum of Understanding (MoU) regarding the mining contracts.
That 6 points approved by Newmont are;
1) to build smelter by partnering with PT Freeport Indoneia
2) to divest minimum 51% shares
3) to set new royalty payment of 3.75% for gold, 4% for copper, and 3.25% for silver
4) ready to change mining contract (KK) into mining business permit (IUP)
5) to cut concession area to 66,422 hectares from current 87,000 hectares
6) to increase the usage of local content