Freeport cancels copper exports from Indonesia as permit expires
Freeport-McMoRan Inc. (NYSE:FCX), the largest publically traded copper producer, has stopped exports from its Grasberg mine in Indonesia after failing to obtain an exemption from a new rule requiring mining exports to use letters of credit.
The shipments have halted since last month, the Jakarta Globe reported, adding that Indonesian authorities had earlier exempted the firm from the rule for six months, but that permit expired on July 25.
On Monday the company, the U.S. largest miner by market value and revenue, announced it might issue up to $1 billion in common shares. The move aims to help the miner come to grips with a hefty debt load following its $9 billion acquisition of Plains Exploration in 2013.
Despite the short rally following the news, the miner’s stock has fallen over 70% in the past year, and it was trading 2.15% lower to $9.98 in New York at 10:05am ET.