FREEPORT MINE PAYS INDONESIA $899 MILLION IN TAXES

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U.S.-based company’s Papua mine biggest in world

WELLINGTON, New Zealand (RNZI, Aug. 31, 2010) - PT Freeport Indonesia, the Indonesian unit of U.S.-based mining firm Freeport McMoran, says it has paid the government up to US$899 million in financial obligations in the first semester of the year.

According to the Jakarta Post, the payment is made up of US$581 million in corporate income tax; $137 million in employee income tax, regional dues and other taxes, $105 million in royalties, and $75 million in the government’s share of dividend.

For the full year of 2009 Freeport says it paid its financial obligations to the Government to the sum of US$1.4 billion, comprising of one billion in corporate income tax, employee income tax, regional taxes and other taxes and levies, 128 million in royalties, and 213 million in dividends.

[PIR editor’s note: According to Austmine News, "the Grasberg Mine is the largest gold mine and the third largest copper mine in the world. It has some 19,500 employees." Open-pit mining began in 1990 and is expected to continue until 2015.]

Freeport Indonesia operates the Grasberg copper and gold mine in Papua Province, which accounts for nearly 40 percent of the company’s total copper reserves.

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