Jakarta, Jubi – An advisor to the Minister of Energy and Mineral Resources, Said Didu, said the mining contract of PT Freeport Indonesia in Papua can be extended for 20 years.
“When using IUPK acceleration option (special mining license), the Freeport contract is extendable for 20 years,” he said in Jakarta olast week.
He said if it can be done in 2015, then Freeport contract will expire in 2035. He also said, acceleration IUPK Freeport is a breakthrough and could be a recommendation to be submitted to the President Joko Widodo in the near future.
With the IUPK acceleration IUPK, the investment of 15 billion US dollars and 2.3 billion smelter will run.
” When the industrial area runs and the construction of roads electricity will also run,” he added.
Under such a scenario, the Freeport contract extension can be done two times.
However, he added, without IUPK option, the new extension can be filed in two years before the contract expires or before 2019.
“With this option, there is the problem that in 2017 the activities of ‘open pit’ will come to an end, so that between 2017 to 2019 will be no activity because there is no certainty of renewal,” he said.
Continuing impact, if there is no activity, then there will be 50,000 people who do not work.
Another problem, The year of 2019 is a political year since there will be elections, so it will not be handled.
Said Didu added, at this time, there are six points renegotiation contract with Freeport unfinished. (*)