TEMPO.CO, Jakarta - The government has made no decision over Freeport Indonesia's contract extension. R. Sukhyar, mineral and coal director general at the Ministry of Energy and Mineral Resources, said the government has not evaluated the US miner's request for extension.

Sukhyar said Freeport has requested for some kind of certainty regarding its operations in Indonesia. It is one of the miner's main demands in completing its work contract amendment. Freeport also proposed some changes to the smelter construction plan, asking for an increased raw material capacity from 1.6 million tons of concentrate per year to 2 million tons per year.

Sukhyar said that in the memorandum of understanding of Freeport's contract of work renegotiation signed in July last year, the government will extend the miners' operation. However, there are conditions to be met, including smelter construction and paying royalties.

Freeport has paid the cash guarantee to show that they are serious in building smelters. However, the construction process has shown little if no progress. "Freeport requested a contract extension now, but the rules specify that an extension is given at least two years before the contract expires," said Sukhyar.

Freeport Indonesia president director Rozik B. Soetjipto admitted that the miner had requested assurance over its contract extension for the Papua concession. The extension should be in accordance with government rules, which is 2x10 years, Rozik said after a meeting with the government at the Mineral and Coal Directorate General building.

This means that Freeport's third contract extension will be valid until 2041, as their twice-extended contract is due to end in 2021.

AYU PRIMA SANDI