Jayapura, Jubi – The government will summon PT Freeport Indonesia to discuss an extension of copper concentrate exports for the next semester, an official said.
“We will discuss it again on Monday (27/7/2015),” Bambang Gatot Ariyono, the Director General of Oil and Petroleum of the Ministry of Energy and Mineral Resources in Jakarta on Sunday (26/7/2015).
He said Freeport was not able to get a contract extension on copper concentrate exports after the permit expired on 25 July 2015.
“Freeport has not met the minimum requirement of 60% absorption of the budget for the smelter project for the first semester. It was a factor considered by the government in its decision not to extend the contract,” Bambang said.
One of its obligations to build the processing and purifying the raw mineral industry (smelter) as mandated by Mineral and Coast Law remains not realizing. Since under the SBY government up to now, it has not materialized. Initially, Freeport was planning to build a smelter in the area of PT. Petrokimia, Gresik, East Java, but it’s only a nonsense.
Measuring the concern of this US mining company on smelter project, the Indonesian Government sets for a commitment of funds. It should allocate USD 280 million for the first semester. Based on the Regulation of the Ministry of Energy and Mineral Resources No. 11/2914 about Procedure and Standard on Provision of Recommendation of Mineral Exporting, Freeport must deposit 60% of funds or equal with USD 170 million to Indonesian Government.
According to Bambang, Freeport can only provide USD 115 million. It clearly violated the Regulation No.11/2014. As consequence it’s not able to export the copper concentrate since 25 July 2015 until it
fulfill its obligation.
“The export might be halted if the permit has expired. There’s no time limit as long as it could fulfill its obligation,” said Bambang.
Freeport should temporarily stop its export activity. The expired export permit was the extension of permit from the second period issued by the government from 25 January 2015 to 25 July 2015 while the first period was issued on 25 July 2014 to 26 January 2015. Freeport that was operated for 40 years in Indonesia has submitted the proposal of export permit for the third times to export 575 thousand tones of copper concentrate. (Dominggus Mampioper/rom)