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Industry Minister Pushes Freeport to build Smelter

10 July 2013 11:18 WIB

MS Hidayat. TEMPO/Suryo Wibowo

TEMPO.CO, Jakarta - Industry Minister Mohamad Suleman Hidayat said that Freeport Indonesia must comply with Indonesia's mining law if the company wishes to extend their operating license. This law requires all mining companies to build a smelter to continue to operate in Indonesia.


"If they do not build a copper smelter, and not supplying, do not talk about the extension," Hidayat said Tuesday, July 9. He asserted that every company must comply with the law that would be put into effect next year.


"There is no single firm that has the privilege of exceptions," he said.


Based on the Energy and Mineral Resources Minister's Decree No.7/2012 on Enhancing Minerals' Added Value though Processing and Refining Activities, the export of mineral commodities is being restricted.


This rule prohibits all mining companies from exporting raw materials; everything must be in the form of finished or semi-finished materials. The regulation also requires mining employers to conduct the processing and refining activities within the country.



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