TEMPO.CO, Jakarta - US-based mining company PT Freeport Indonesia has asked the government to evaluate the plans to ban the concentrate exports which will come into effect in January 2017. The contract of work holds that the company shall be entitled to export processed mineral, PT Freeport claimed.
“We have asked the government to review the regulation which will restrict the concentrate exports,” Freeport spokesperson Riza Pratama told Tempo last weekend.
The Energy and Mineral Resources Regulation No. 1/2014 stipulates that processed mineral exports will be banned starting January 11, 2017. The government has recently proposed amendment to Government Regulation No. 23/2010 on Mineral and Coal Mining Business Activities. In draft revision of article 112 C (1), holders of contract of work will be required to build smelters in Indonesia.
The draft revision also holds that in order to continue exports, holders of contract of work shall change their mining permit to special mining business permit (IUPK). The IUPK holders will be given a maximum of five years time to export processed minerals following the execution of the revised Government Regulation No. 23/2010.
Export permit will also be restricted only for IUPK holders who have built onshore smelting facilities. Export duty is charged according to smelter development.
Director General of Mineral and Coal, the Energy and Mineral Ministry, Bambang Gatot Ariyono said the government continue to deliberate on the whole draft revision of the regulation. The draft revision also touched on IUPK concession, which is smaller than that of contract of work, and contractors obligation to pay bigger royalties and taxes.
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