Newmont Mining Corp (NYSE:NEM) has got the fate of its operations in Indonesia hanging in the balance, after the mining ministry refused to renew the company’s copper export permit, unless the company updates the ministry on the development of its new smelter. Furthermore, NEM has also been experiencing a decline in terms of its stock price, owing to a sharp decline in gold prices. The recent spike in gold pricing was short lived, as the dollar gained on easing policy by the majority of central banks.

Newmont Mining Corp is considered to be the second largest miner in Indonesia and had agreed to develop mineral processing facilities in the country, so as to end any further tax disputes. Previously, the government had halted exports by the company for a period of 8-months, over some tax disputes with the miner. Even though the news is bad for the currently declining Newmont, it could help lift the industry as a whole. The stoppage of exports from the country would mean that copper would experience a price hike in the international market.

On previous occasions, however, the company has voiced its concerns that its mining operations in the country are incapable of supporting their own smelter. Fortunately, the Indonesian government had brokered a deal between Newmont and Freeport McMoRan to share a single smelter for their operations. However, the company is still very profitable, due to its lower operating expenses. It is estimated that Newmont pulls gold from the ground at an average price of $900 per ounce.

Unfortunately, the company’s debt has been increasing very quickly and as of 2Q2015 Newmont owed $6.4 billion in debts. Currently, the miner has been going along with the falling prices of commodities and practicing extensive cost cutting and selling all of its non-core assets, worth $2 billion.

Newmont Mining Corp (NYSE:NEM) closed at a share price of $15.60, after experiencing a trade volume of 11.09 million shares during the September 22 session and recording a decline of 6.22% in its share price.