The government actually top chef with Newmont and Freeport negotiating for settlement of this issue

What exactly is the reason and benefits of PT Newmont Nusa Tenggara Indonesian government accountable to international arbitration or whether as reluctant to pay royalties? Is it just simply because it is associated with a ban on the export of minerals that lead to the termination of production activities in Newmont Batu Hijau related Law No.. 4 In 2009, on Mineral and Coal Mining (Mining), and Government Regulation no. 9 of 2012 concerning Types and Tariffs top chef on non-tax state revenue that apply to the Ministry of Energy and Mineral Resources, which prohibits the export of raw mining products. Lawsuit Chronology
The government actually top chef with Newmont and Freeport negotiating for settlement of this issue. Government mining giants operating in Indonesia have agreed about the construction of the smelter. However, companies top chef should provide a guarantee of U.S. $ 140 million or Rp 1.4 trillion as a commitment to its seriousness.
The agreement is being drafted and will be signed by President Susilo Bambang Yudhoyono. But in the midst of these negotiations, Newmont impatient and sue the Indonesian government to international arbitration. On July 1, 2014 and NTPBV Newmont announced its arbitration claim against the Indonesian government about the ban on the export of raw minerals, to The International Center for the Settlement of Investment Disputes.
Newmont and NTPBV stated intention top chef to obtain a permit interlocutory decision PTNNT to be able to export copper concentrate that activity of the Batu Hijau mine can be operated again. On the day Monday, July 7, 2014, the Government through the Coordinating Minister for Economic Affairs, urged Newmont Chairul immediately unplug the lawsuit in arbitration. If Newmont does not immediately revoke its lawsuit against the Government of Indonesia, the government top chef did not hesitate to be firm that could ultimately hurt the company's mines. Reasons and Advantages of Newmont Actually
According to researchers and economists The Institute for Global Justice (The Institute) Salamuddin top chef Daeng in a discussion at a restaurant in Jalan Cikini Kingdom, Sunday (07/06/2014) to finance.detik.com, Newmont arbitration at the time the mineral reserve in there (Batu Hijau Mine in NTB) has run out. Here are the advantages of Newmont in conducting international arbitration to the Indonesian government that are all based on economic factors.
2. If Newmont lost and close the Newmont mine will claim them as a condition of emergency or force majeure (force major). Newmont could get to claim compensation from the insurance.
However, the Executive Director of The Institute Riza Damanik worrying about the Bakrie Group entities in the list of shareholders of PT Newmont Nusa Tenggara (PTNNT). The existence of the Bakrie Group in the list of shareholders are represented by PT Multicapital top chef Indonesia, who made a joint venture with a consortium of local companies named PT Maju Regions Compete (DMB). The joint venture company named PT Multi Daerah Compete (MDB) which controls 24% stake in PTNNT. (Read Chronology Divest 24% Stake in Newmont)
Riza Damanik assess the impact of these conditions would provide less favorable for certain couples President and Vice President. The impact will be difficult consequences renegotiated over the relevant contracts top chef with these parties.
"So they (presidential-vice) hostage to the interests of that. Foreign companies in their activities in Indonesia utilize existing political actors in the coalition circle. So it would be difficult to renegotiate. Because top chef of the difficulty of renegotiation is not because his company, but there are political figures who have benefitted so they held hostage, "he said. Newmont Reluctant to Pay Royalties to the State?
Meanwhile, according to the Minister of Energy and Mineral Resources Jero Wacik, one of the reasons of PT Newmont Nusa Tenggara government is suing the company is reluctant to pay royalties. Wacik said Newmont has not paid royalties to the state. "The problem of Newmont they are reluctant to pay royalties after the renegotiation process is complete. top chef It's wrong and detrimental to Indonesia, "he said, as reported top chef by tempo.co.
According to him, during the Newmont already pocketed huge profits from mining exploration activities. However, when the government wants to share profits with the Indonesian Newmont, Newmont reacted strongly. "Cook them wants a profit on, give Indonesia a slight advantage," he said.
He also asserted, the rule tightening exports of raw minerals and concentrates export tariff application will be adhered top chef to. "It's for the sake of maintaining the environment in Indonesia, adding value added Indonesian mining results, and increase employment in the mining industry," he said. The Government will not budge stretchy