Freeport Says Indonesia Exports Could Resume Soon

Posted by Eric Haun
Wednesday, July 23, 2014

Freeport-McMoRan Inc said on Wednesday it expects to "imminently" sign an agreement with Indonesia that would enable it to immediately resume copper concentrate exports which have been halted for more than six months.

Freeport said on July 8 it had agreed on a draft memorandum of understanding but had not signed it. At the time, it gave no time frame on when it would resume exports. Indonesia introduced a mineral ore export ban and a steep export tax in January.

The gold and copper miner also reported second-quarter results on Wednesday that were little changed from a year-ago.

"It is a compromise to create a bridge for us so that we can return to normal operations," Chief Executive Richard Adkerson said of the MoU on a call with analysts and investors.

Under the agreement, Freeport would pay a "significantly reduced" export duty in 2014, 2015 and 2016 but higher royalties on copper and gold sales. It would also pay a $115 million "assurance bond" against development of a smelter, Adkerson said.

Freeport, which owns and operates the massive Grasberg mine, wants financial incentives from the government to build a new smelter. Indonesia imposed the new rules partly to spur construction of smelters in the country, but miners have said building new capacity does not make economic sense.

Adkerson said the negotiations also involve agreeing on terms to extend Freeport's operations beyond 2021, when its current contract with the government expires.

Indonesia's new president said on Tuesday he planned to sit down with Freeport and other miners to resolve the row, which has halted $500 million of metal exports a month in Southeast Asia's biggest economy. Newmont Mining Corp's concentrate exports are also halted, and it has stopped production and filed for international arbitration.

Freeport has cut production in Indonesia, which weighed on results in the quarter ended June 30, but company-wide, copper, gold and molybdenum production rose.

The year-earlier figures included only one month of results from Freeport's recently acquired oil and gas businesses, so that segment's revenue jumped to $1.24 billion from $372 million.

Net income was $482 million, or 46 cents a share, compared with $482 million, or 49 cents, a year earlier. Revenue rose to $5.52 billion from $4.29 billion a year earlier, boosted by the energy acquisitions.

Analysts, on average, had been expecting earnings of 51 cents a share on revenue of $5.34 billion, according to Thomson Reuters I/B/E/S.

Freeport said it would continue to look for ways to reduce its debt, which could include asset sales or reducing or deferring capital spending. It ended the quarter with $20.3 billion of debt.

(Reporting by Allison Martell in Toronto and Nicole Mordant in Vancouver; Editing by Bernadette Baum, Amran Abocar and Richard Ch
ang)

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter April 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Bulk Carrier Trends

Lerwick Harbor sees Seasonal Boost

The opening of the offshore season in northern waters has seen specialist oil industry vessels return to Lerwick Harbor during April to support subsea development projects.

India's Highest non-coking coal discharge at Gangavaram Port

Gangavaram Port, the deepest and the most modern port in the country, has created yet another historical milestone record by discharging 1,56,339 metric tons of Non-Coking Coal from the vessel M.

Baltic Index Down on Lower Capesize, Panamax Rates

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, slipped on Friday, as demand for capesize and panamax vessels fell.

Energy

Blacklisted Tanker Returns to Libya's Zawiya Port

A tanker that Libya's rival eastern government had been using to try to export oil in defiance of the Western-backed administration in Tripoli returned to the country on Saturday,

Lerwick Harbor sees Seasonal Boost

The opening of the offshore season in northern waters has seen specialist oil industry vessels return to Lerwick Harbor during April to support subsea development projects.

Cory Brothers Opens in Amsterdam Port

Cory Brothers Shipping Agency is delighted to announce the opening of Cory Brothers (The Netherlands) BV, in the port of Amsterdam, servicing the ARA range. The

News

Blacklisted Tanker Returns to Libya's Zawiya Port

A tanker that Libya's rival eastern government had been using to try to export oil in defiance of the Western-backed administration in Tripoli returned to the country on Saturday,

Lerwick Harbor sees Seasonal Boost

The opening of the offshore season in northern waters has seen specialist oil industry vessels return to Lerwick Harbor during April to support subsea development projects.

Cory Brothers Opens in Amsterdam Port

Cory Brothers Shipping Agency is delighted to announce the opening of Cory Brothers (The Netherlands) BV, in the port of Amsterdam, servicing the ARA range. The

Logistics

Cory Brothers Opens in Amsterdam Port

Cory Brothers Shipping Agency is delighted to announce the opening of Cory Brothers (The Netherlands) BV, in the port of Amsterdam, servicing the ARA range. The

Shipping Industry Flying On The Dragon’s Back

As the many Greek players in the shipping industry know well, the legend of Icarus tells us the dangers of flying too high. Merchant vessel earnings eventually

Panama Canal Dismisses ITF Claims

The Panama Canal has dismisses claims by the International Transport Workers’ Federation (ITF) that questions industry standards and the operation of the Expanded Panama Canal’s new locks.

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Pipelines Pod Propulsion Port Authority Ship Electronics Ship Simulators Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0928 sec (11 req/sec)