Summary
Newmont Corp /DE/ (NEM) filed an 8-K on June 5, 2014, to report a significant operational development at its Batu Hijau mine in Indonesia. The company's Indonesian subsidiary, PT Newmont Nusa Tenggara (PTNNT), has officially invoked the force majeure clause of its Contract of Work due to ongoing export restrictions imposed by the Indonesian government. This action halts copper concentrate production and export from the Batu Hijau mine. This event has direct implications for Newmont's financial outlook. The company explicitly cautions investors that its previously issued 2014-2016 copper outlook, which assumed the continuation of Batu Hijau operations and timely export approvals, may no longer be achievable if exports cannot resume by the end of June. Investors are advised not to rely on the prior copper outlook in light of this development.
Key Highlights
- 1PT Newmont Nusa Tenggara (PTNNT), a subsidiary of Newmont, has declared force majeure on its Contract of Work due to Indonesian export restrictions.
- 2Copper concentrate production and export at the Batu Hijau mine in Indonesia have been officially halted.
- 3Newmont is actively engaged in discussions with the Indonesian government to resolve the export issues.
- 4The company cautions investors that its previously issued 2014-2016 copper production outlook is at risk.
- 5The Batu Hijau mine's inability to export by the end of June 2014 will impact Newmont's copper outlook.
- 6Investors are advised not to rely on the previously stated copper outlook due to this event.