"With a current account deficit at a near-record high, the Indonesian government is scrambling to ease nationalistic resource rules that were passed more than a year ago, including a ban on mineral ore exports from January 2014.
Southeast Asia's largest economy is the world's top exporter of nickel ore, thermal coal and refined tin, and home to the world second-biggest copper mine.
Newmont issued an internal memo to employees this week informing them that while talks continue with the government on the 2014 regulation, contingency plans will start to be developed, Rubi Purnomo, head of corporate communications for Newmont in Indonesia said in an emailed response to Reuters.
"We felt that our employees needed to be informed that we have to start developing contingency plans in the event that the export of copper concentrate is banned, including the worst case scenario of ceasing operations at Batu Hijau," Purnomo said.
The Indonesian Energy and Mineral Resources Ministry has initiated talks with lawmakers to revise the 2009 law that requires mineral ores to be processed domestically before export, starting from January 2014.
One option being discussed is to allow limited exports from companies that have already made investments or signed agreements to process ore domestically, such as PT Perusahaan Perseroan Aneka Tambang (Antam).
"We have had meetings with numerous ministries, and are working on arrangements to supply copper concentrate with three companies that plan to build copper smelters in Indonesia," Purnomo added.
"However, we have not yet received confirmation of our right to export copper concentrate as specified in our CoW (contract of work), after Jan. 12, 2014.
A second option being considered by the government, is to delay the ban and instead increase the ore export tax by as much as 50 percent from the current 20 percent, the Indonesian Mining Association says."
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