REPUBLIKA.CO.ID, JAKARTA - Indonesia is drafting a new mining export tax that would more than halve the base rate to be paid by miners but doubts remain whether it would be accepted by major copper miners and end a five-month-old dispute that has halted concentrate exports.

Indonesia's main copper concentrate producers Freeport-McMoRan Copper & Gold Inc and Newmont Mining Corp stopped exports in January when the government introduced new mining rules, including an escalating export tax. The two US companies have previously insisted they should not have to pay any additional taxes because it would violate their current mining contracts, casting doubt on whether even a lower tax rate would be accepted by the miners.

Coal and Minerals Director General Sukhyar said on Friday the new draft regulation meant the export tax would start below 10 percent and would be linked to a company's progress in building a smelter.

"Yesterday (Thursday, ed)I had discussions with the finance ministry and they said the draft is already finalized," Sukhyar told reporters, adding that it been agreed by the mining, industry and finance ministries.