A US-based mining giant has warned it could take legal action against Indonesia over a dispute about the Grasberg mine in Papua province.
Freeport-McMoRan said it could take Indonesia's government to arbitration and seek damages over the contractual dispute which has stalled operations at the world's second-biggest copper mine.
Freeport is in protracted negotiations with Jakarta over the terms around extension of its licence to mine the massive Papua deposit.
Freeport-McMoran mine in West Papua. Photo: AFP PHOTO / OLIVIA RONDONUWU
The mining conglomerate was already in dispute over US$469 million in water taxes and penalties claimed by Papua province dating back to 2011.
But mining operations at Grasberg ground to a halt eleven days ago over a government move to halt exports of copper concentrate to boost domestic industries.
Freeport said it would only agree to a new mining permit with the same fiscal and legal protection in its current contract.
