U.S. mining company Newmont said on Tuesday (03/06) it has stopped production of gold and copper mine in Indonesia after the adoption of the Law on Mineral and Coal January.
The law prohibits the export of raw mineral ores to maintain Indonesian resources and to benefit more from the domestic sector.
Newmont said their storage facility at the mine is full after nearly five months of stop exporting.
But they put off 8,000 employees and contractors to lay them before the meeting with the government this week.
"Newmont Nusa Tenggara (PTNNT) today said the existing storage facility at Batu Hijau is now full, forcing shutdowns and stop production for processing copper concentrate," Newmont said in a statement.
Pressure layoffs
The possibility of widespread Termination usual add pressure on the Indonesian government to find a solution, after a weak level of exports contributed to the slowing of economic growth in the first quarter and the swelling trade deficit in April.
"The storage facility in copper concentrate (Newmont) at Batu Hijau is now full, forcing the operation to stop the processing activities and stop production of copper concentrate," the company said in a statement.
Zaenuddin Wanden, the head of the union representing workers Newmont, confirmed to AFP that the machine is not in operation at the mine.
U.S. Newmont and other mining companies, Freeport McMoRan Copper & Gold Inc., contributing to 97% of copper production in Indonesia 5.
The government will continue to impose a ban on the export of raw minerals in January 2014, with exceptions.
Minister of Energy and Mineral Resources said the ban according Wacik Click Mining Law No. 4 of 2009 applied on January 12, 2014.
Exceptions will be given to companies that have to process minerals in the country, Reuters news agency reported on Friday (27/12).
But Jero said that means the government gives leeway because in principle there is no mining company is allowed to export raw minerals.
Mining Law which was passed in 2009 mandates businessmen mineral processing sites in order to build the mine so as to export mining results in the form of minerals that have been processed up to 99%.
Business actors assess this rule too heavily borne by the holder of the local industry Mining Permit (IUP).
"To this clear IUP weight because right mean just starting the business in the last 7-8 years," said Poltak Sitanggang, Chairman of the Indonesian Employers Association Minerals (APEMINDO) when interviewed by BBC Indonesia some time ago.
In contrast according to the rules should be reinforced APEMINDO applied to corporate holders of the Contract of Work (CoW), which has been operating for decades in Indonesia..BBC
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