REPUBLIKA.CO.ID, JAKARTA -- PT Freeport Indonesia (FI) and PT Newmont Nusa Tenggara (NNT) have yet to wait for export license from the trade ministry.
The decision of the trade ministry on the export license will depend on the result of negotiations between the two US copper and gold producers with the energy and mineral resource ministry.
FI, the Indonesian unit of Freeport McMoran Copper & Gold and NNT, a subsidiary of Newmont Mining Corp. together account for 97 percent of the country's copper production.
"Talks are now in the final stage," Trade Minister Muhammad Lutfi said here on Tuesday.
Lutfi said negotiations with the energy and mineral resources ministry is expected to wrapped up this week.
FI and NNT stopped exporting copper and gold after the implementation of the a state law banning export of unprocessed mineral ores.
FI and NNT, however, may be allowed to continue exporting their copper concentrate if they are considered serious in their plan to build smelter to process their mineral ores for which they are to meet certain conditions.
The export ban has been effective since mid January aimed at promoting processing industry in the country.
The warehouses of both FI and NNT have been full of copper concentrate worth around US$1.5 billion after they stopped exports since January.
Lutfi said if the the stocks of the two companies could exported shortly the deficit in the country's trade balance could be narrowed by more than US$1 billion.
The country posted a deficit of US$1.96 billion in April on shrinking exports and a surge in imports.
The trade ministry already issued documents for registered exporters (ET) for 81 companies of which 48 companies are recommended by the energy and mineral resource ministry with the 33 others recommended by by the industry ministry.
Six of the 81 companies are exporters of mineral concentrate including Freeport Indonesia and Newmont Nusa Tenggara.
Companies holding ET documents could export processed minerals after obtaining export approval from the trade ministry.
Exports of refined minerals need only ET document without export approval from the trade ministry license.
PT Freeport and PT Newmont Nusa Tenggara have agreed to pay commitment tariff as a guarantee that they would build the necessary smelters for their minerals.
Freeport agreed to pay US$115 million and Newmont is to pay US$25 million in guarantee fund.
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