Freeport's mining area - Jubi

Freeport’s Export Permit Expires on 25 July 2015

Freeport's mining area - Jubi

Freeport’s mining area – Jubi

Jayapura, Jubi – PT Freeport Indonesia (PTFI) said it hoped the Indonesian Government will soon issue an extension of export permit for copper concentrates since it was only valid for six months and would expire on July 25.

Freeport Indonesia spokesperson Riza Pratama said the company has met all requirements to get a permit extension, including progress on the smelter project in Indonesia for the last six months and its plans for next six months.
“Of USD 2.3 billion of investment on smelter, up to now our expenditure has met the target of development plan and in accordance with government’s regulation on smelters,” Pratama said as reported Investor Daily on Wednesday (22/7/2015).

Furthermore, he said PTFI also has credited a deposit of USD 115 million since last year in State-owned Bank. It is the evidence of its concern on smelter project according to Minister of Energy and Mineral Resources Regulation No. 11 2014 on Procedures and Requirements on Implementation Referral of Mineral Processing and Purifying Overseas Sales.

While related to Freeport’s export permit,  the Minister of Energy and Mineral Resources Sudirman Said separately said the President Jokowi asked him to follow the applied regulation namely Regulation No.4 2009 about coal and mineral.
“The extension of new contract of work can be done before the contract expires and it’s not admit the term IUPK. We still refer to regulation. But don’t forget that Freeport still has contract that valide to 2021. So there is no reason to slow down the operation,” said Sudirman Said on Wednesday (22/7/2015).


He admitted the government will extend the MoU with PTFI with two conditions, however he only mentioned one, namely PTFI must demonstrate a commitment of planning and fund absorbing untul 60% within the last six months.

If the requirement was fulfiled, he said the government could extend the copper concentraces export permit for PTFI. “So it should demonstrate its commitment to absorp 60% of trilions of funds. I will check the exact figures. And from the figures, I checked that the outstanding is less than USD 50 million,” he said.

He admitted to already discuss about those requirement with the President Joko Widodo. According to him the president advised the permit extension could be issued if Freeport could meet the requirements. However, he said the governemnt would not just terminate the Freeport’s contract but it wants to ‘escort’ PTFI’s investment. The government is also pomping up the investment, thus it’s not make sense to just let go the investment. According to him, it’s only about legal sceme.

Meanwhile Freeport McMoran CEO James Moffett has met the Indonesian President at Presidential Palace on Thursday (2/7/2015). The meeting was reported as Freeport’s commitment to stay operating in Indonesia with a commitment to invest USD 18 billion. USD 2.5 billion is alocated for smelter project according to Mineral Resources Law No. 4 2009. In addition, Freeport also plans to build the greatest underground gold mining in the world. (Victor Mambor/rom)

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