Out Fox The $treet

With news breaking that the CEO of Freeport-McMoRan Copper & Gold ( NYSE: FCX     ) is heading to Indonesia next week to discuss the ongoing tax issue , investors have a couple of reasons not to fret over the outcome. The issue is entering the sixth month of dispute and has forced the company to cut production in the country by 60%. Even Newmont Mining ( NYSE: NEM     ) is reaching a copper stockpile capacity that would force it to cut production as well. According to Reuters, the country claims that the escalating tax on miners has led to plans for 66 smelter projects to improve the economy and help the country move up the value chain versus only exporting minerals. It's possible the meetings could involve finalization of the talks between Freeport-McMoRan and Newmont with Indonesia's state-owned PT Aneka Tambang to build a $2.2 billion copper smelter; this could lead to a quick removal of the export ban and punitive tax. If not, investor...

Considering the lingering issues in Indonesia, the best investors can say about the first-quarter earnings report is that Freeport-McMoRan Copper & Gold ( NYSE: FCX     ) is thriving despite the troubles in that country. The company is facing export bans on about 50% of production at the giant Grasberg mine in Indonesia, but it didn't stop the copper and gold producer from achieving solid income and operating cash flow. Ironically, the company benefits from the reduced copper supply on the markets with mines in North America, South America, and Africa. Even more encouraging and important is that China demand remains robust, and European demand is finally rebounding. Read the full article here . Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

By all accounts, it appears that Freeport-McMoRan Copper & Gold ( NYSE: FCX     ) is wrapping up any lingering issues with the Indonesian government. The stock fell more than $7 back in January on a decree by the government to impose a heavy export duty on unprocessed materials, including copper and gold. Freeport-McMoRan is a leading copper producer with global operations, though the largest mine is located in the Grasberg mining complex in Indonesia. Similar to Newmont Mining ( NYSE: NEM     ), the stock was affected by the government decree, though expectations were for a peaceful resolution. The stock remains down nearly $5, providing an opportunity for long-term investors willing to accept some of the global risk but also the rewards of a diversified portfolio of commodities. Read the full article here. Disclosure: Long FCX. Please review the disclaimer page for more details. 

While the export tax issue in Indonesia gets all the press, the real reason Newmont Mining ( NYSE: NEM     ) continues to hit new 52-week lows is related to gold prices. Though facing the same issue in Indonesia, Freeport-McMoRan Copper & Gold ( NYSE: FCX     ) has seen some bounce-back with a bigger focus on copper and oil. Both miners export a considerable amount of material from Indonesia and have so far failed to obtain export licenses or waivers on the new export tax. Back in January, the Indonesian government entered an order for punitive taxes for miners that don't process materials in the country. While Freeport-McMoRan has publicly discussed plans of potentially building a smelter, Newmont hasn't done the same. Read the full article here. Disclosure: Long FCX. Please review the disclaimer page for more details. 

Last week, the Indonesian Ministry of Finance announced a punitive tax on the export of ore concentrate mined within its country. Considering Freeport-McMoRan ( NYSE: FCX     ) operates a massive mining facility in the country that produces substantial copper and gold ore, the impact is very concerning to the bottom line for shareholders. The decree also impacts mining operations of Newmont Mining ( NYSE: NEM     ) so Freeport-McMoRan will have some extra help in lobbying for a reprisal of the proposed new law. For numerous reasons highlighted in the recent earnings conference call, investors shouldn't be so quick to dump the stock. Jefferies recently named Freeport-McMoRan a top franchise pick, and this the type of scenario where investors can pick up long-term winners at bargain prices. Read the full article here . Disclosure: Long FCX. Please review the disclaimer page for more details.