After striking an agreement with the Indonesian government on September 3, Newmont subsidiary PT Newmont Nusa Tenggara (PTNNT) expected copper concentrate shipments to resume this week, following ramp-up operations having been under way since early September at its Batu Hijau mine, with planned milling and mining levels expected to be achieved during October.
The revised contracts are expected to give the Indonesian government better terms in the exploitation of its mineral resources.
The firm has booked new contracts worth 481 billion rupiah in the year to date, 32 percent of its full-year target.
The attractions are clear — lower labour costs, political stability and a large domestic market where consumer spending power is growing. It seems that they are not alone. Net foreign direct and portfolio investment into Indonesia totalled US$23.2 billion last year, according to official balance of payments (BOP) data.
The firm, in cooperation with its parent, PT Wijaya Karya Tbk, is finalising a deal to acquire an 80 percent stake in concrete maker PT Citra Lautan Teduh for $23.5 million.