By Linda Silaen and Deden Sudrajat
JAKARTA, Indonesia--Indonesia approved new mining-contract terms for PT Freeport Indonesia Friday, according to government officials.
The new contract was agreed to by President Susilo Bambang Yudhoyono.
It is expected to be signed Friday by Freeport and Director General of Coal and Mineral Resources Sukhyar, Coordinating Minister for the Economy Chairul Tanjung said.
Freeport-McMoRan Copper & Gold Inc. (FCX) said Wednesday it will pay a $115 million assurance bond supporting its commitment for to build an oresmelter. It will also pay reduced export duties that will continue to decline as the smelter is built. It will pay royalties of 4% for copper and 3.75% for gold. These were previously 3.5% and 1%.
Indonesia banned ore exports in January and introduced taxes on concentrate exports to force mining companies to build smelters.
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(END) Dow Jones Newswires
July 25, 2014 01:46 ET (05:46 GMT)
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