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Freeport Indonesia has notified mining ministry of govt violations of contract -statement
February 20, 2017 / 3:35 AM / 10 months ago

Freeport Indonesia has notified mining ministry of govt violations of contract -statement

JAKARTA, Feb 20 (Reuters) - Freeport-McMoRan Inc’s Indonesian unit has submitted a notification to Indonesia’s mining ministry describing breaches and violations of its contract of work by the government, the company said on Monday.

Freeport said it hopes to resolve the dispute with the government, but it also reserved the right to start arbitration against the government and to seek applicable damages.

The company warned of “severe unfavorable consequences for all stakeholders, including the suspension of capital investments, a significant reduction in domestic purchases of goods and services, and job losses for contractors and workers as we are forced to adjust our business costs to match constrained production,” the company said in a statement.

Freeport has been negotiating with the Indonesian government after halting its exports of copper concentrate due to new mining rules. On Friday it said it could not meet contractual obligations for copper concentrate shipments from the giant mine following a five-week export stoppage. (Reporting by Fergus Jensen and Wilda Asmarini; Writing by Gayatri Suroyo)

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