On 1 July, PT Newmont Nusa Tenggara and its majority Dutch
shareholder Nusa Tenggara Partnership BV, announced
that they have filed international investment arbitration proceedings against
the Indonesian Government to seek relief from export restrictions that have
halted production at the Batu Hijau mine and are said to have inflicted
hardship and economic loss on PT Newmont Nusa Tenggara’s employees,
contractors, and other stakeholders.
The claimants allege that the government’s imposition of
new export conditions, a new export duty and a ban on the export of copper
concentrate breach PT Newmont Nusa Tenggara’s Contract of Work with the
Indonesian Government, and the bilateral investment treaty between Indonesia
and the Netherlands. The claimants have indicated that they will seek interim
injunctive relief, so that work at the mine can resume.
This claim follows an announcement earlier this year that
Indonesia intended to cancel all of its 67 bilateral investment treaties, and
draw up new treaties. The bilateral investment treaty between Indonesia and the
Netherlands was among the first to be cancelled, with effect from July 2015
(though a sunset clause in the treaty means it will continue to apply for a
period after that).
For further information, please contact Jay Leary, Partner, Brisbane, or your usual Herbert Smith Freehills contact.
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