The Indonesian subsidiary of US mining giant Freeport McMoRan, has ceased exporting copper concentrate after its letter of credit (L/C) suspension expired in July.

The suspension exempted Freeport Indonesia from legislation introduced earlier this year that specified that L/Cs must be used for exports of four primary commodities (DC World News, 16 February 2015).

Extension request

Freeport Indonesia has tried to obtain an extension of its L/C suspension from the trade ministry according to company spokesman, Riza Pratama.

He says the ministry has yet to respond and Freeport is awaiting official notification as to whether or not it can continue to export copper on non-L/C terms.

No L/C obligation

As of April 2015, Indonesian legislation has required that exports of four primary commodities - coal, palm oil and palm-kernel oil, oil and gas, and minerals, including copper - must be made on L/C terms.

But Riza says that Freeport is not obliged to export on L/C terms under its current contract with the government.

However, the company says it wants to strictlycomply with all of the ministry's regulations and Indonesian legislation.

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