UPDATE 1-Newmont Indonesia restarts copper exports; supply overhang looms

Tue Sep 30, 2014 6:11am GMT
 

* Newmont says exports 30,000 T from Indonesia on Monday

* Refined copper seen in 226,000 T surplus in 2014-Reuters poll (Adds Newmont Indonesia spokesman's comments, copper market impact)

By Michael Taylor and Melanie Burton

JAKARTA/SYDNEY, Sept 30 (Reuters) - Newmont Mining Corp sent out its first copper concentrate shipment from Indonesia this week that ended a nine-month hiatus, highlighting a ramp up in copper mine supply that is expected to tip the market into surplus this year.

U.S.-based miners Newmont and Freeport-McMoRan Inc halted exports in January after Indonesia imposed a hefty export tax that the miners said violated their mining contracts.

The export tax was part of moves to force all miners to develop local mineral processing facilities, which would bring bigger returns for the government from Indonesia's mineral resources.

Newmont signed a key deal to resolve the export dispute with the Indonesian government early in September and expects to be fully operational at its Batu Hijau mine within six to eight weeks. It had halted production in June.

"We've exported 30,000 tonnes," Newmont Indonesia spokesman Rubi Purnomo told Reuters in a text message, adding that the shipment was made late on Monday.

The country's largest producer, Freeport, resumed shipments in early August after it agreed with the government on an initial road map for building processing capability in the country.   Continued...

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