TEMPO.CO, Jakarta - Freeport Indonesia (IDX: PTFI) will start letting go more workers next week, following the ban on concentrate export. The Indonesian government has not given the US miner an export license since the company did not change its contract from COW to special mining permit (IUPK).
"Because Freeport cannot export without forfeiting the COW, there will be several unfavorable consequences for all stakeholder," President and CEO of Freeport-McMoRan Inc. Richard C. Adkerson said in Jakarta Monday, February 20.
Adkerson said that the export ban has led to production cut, and therefore the company no longer needs a number of its workers.
Freeport's normal operation plan stated that it employs 29,000 workers from 2017 to 2021. But with the export ban, that number shrinks to 11,000.
Freeport Indonesia now has 32,000 workers, of which 12,000 are employees and the rest are contractors.
Adkerson did not say how many workers will be let go, but ensured that both Indonesian and foreign national employees will be let go.
Adkerson said that the employee terminations are not a threat to the government, but is something that the company is forced to do.
"This is not to negotiate with the government. We have to cut costs so that we can operate normally, financially," Adkerson said.
Since January 12, Freeport's concentrate export license ended. Conditions worsened after a strike at the smelting facility of PT Smelting Gresik. Freeport had to cease production as there was no place to store the concentrates.
VINDRY FLORENTIN
