Jayapura, Jubi – PT Freeport Indonesia denied allegations by the Minister of Maritime Rizal Ramly that it pays a small royalty to the Indonesian government.
As one of third larger gold and copper company in the world operating in Papua, PT Freeport Indonesia was accused raking in huge profit, while Papua indigenous around the mining areas are living under poverty. The Minister Ramli accused PTFI only pay 1 percent of royalty for gold exploitation on the Amungsa land.
But the company’s spokesperson Riza Pratama denied the allegation, saying that the company has increased the royalty for copper, gold and silver since 2014.
“In line with the renegotiation of the Contract of Work, since July 2014, PTFI has increased the amount of royalty for copper, gold and silver respectively from 3.5%, 1% and 1% to 4%, 3.75% and 3.25%,” Riza said.
During the time it was estimated that PTFI has produced 40.9 tons of gold per year. If the price of a gram of gold is Rp 300 thousand so 40.9 tons equals with Rp 12.3 trillion per year. 1 percent of the company’s gross income is Rp 123 billion, it’s excluding the copper and silver.
Based on Freeport’s data, the stock of gold in DOZ (Deep Ore Zone), Deep MLZ, Big Gossan, Grasberg Bloc Cave and Wild Cat mining areas is recognized 67 million ounce or approximately 1.899 tons (1 ounce = 28.35 gram). PTFI plans to work on these gold mining till 2042. Refer to the price of Rp 300 thousand/gram, PTFI has earned Rp 569.7 trillion from the gold stocks during its operation in Papua.
Because of since 1967 to 2014, Freeport only paid 1 percent of royalty to the government, including the indigenous Papuans around the mining from its profit, the government asked for the increment to 7 percent. “We (the government) asked Freeport to pay 6 to 7 percent royalty,” said Rizal Ramli during his presentation at the Indonesian House of Council in the mid October. (Victor Mambor/rom)