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Freeport Export Permit May Not be Extended

Translator

Editor

26 January 2018 08:28 WIB

TEMPO.CO, Jakarta - The Energy and Mineral Resources Ministry reported that Freeport Indonesia`s copper concentrate permit will expire as soon as next month.

The Ministry suggested that the mining company must submit a new recommendation from the Indonesian government to continue its overseas concentrate sales.

Director General of Coal and Mineral Bambang Gatot Ariyono said that Freeport must fulfill several obligations to continue its export activity. Not fulfilling just one requirement can cause the company to fail to obtain an official recommendation.

Read: Freeport Resumes Mineral Concentrate Exports

“Continuing the export must comply with regulations first,” said General Director of Mineral and Coal Bambang Gatot Ariyono on Thursday, Jan. 25.

The Ministry allowed the exports to be conducted under Energy Minister Regulation No. 5/2017 that was made effective in January of 2017 until 2022.This regulation is a revised version of Regulation No. 1/2014 that banned the export of raw minerals.

Freeport McMoRan Richard Adkerson previously stated that his company is committed to building a smelter. He said that they will continue their efforts after they receive an operational certainty after their Working Contract ends in 2021.

Adkerson hopes that their exports can continue to reach the company’s target. Freeport’s sales goal this year is 1.2 billion pounds of copper and 2.4 million ounces of gold.

Freeport’s special mining permit (IUPK) was introduced on February 10. Not long after, the Indonesian Government issued a concentrate export permit for 1.13 million tons that are valid until next month.

Robby Irfany



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