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Wednesday, Jun 4, 2014

Business

Indonesia unlikely to reach new tax deal with miners this week-govt

Reuters | Wednesday, Jun 4, 2014

A digging machine loads ore from stockpiles onto trucks at Newmont Mining Corp's copper and gold mine on Indonesia's Sumbawa island in this September 21, 2012 file photo.

JAKARTA - Indonesia is unlikely to reach a final deal with miners on a mineral export tax this week, a finance ministry official said, folowing a series of talks on controversial rules that have led to a five-month stoppage of copper concentrate shipments.

"What has been agreed on is the principle of the export tax," deputy finance minister Bambang Brojonegoro told reporters shortly after a meeting with government and mining officials on Wednesday.

The amount of export tax would not likely be set until after this week, he said, adding that the amount would be reduced as mining compaines make progress building smelters.

"If they want a comfortable export tax rate, they must build smelters. There will definitely still be an export tax range linked to (firms') smelter (project) progress."

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