Analyst: Freeport Should Build Smelters in Papua
26 July 2014 15:08 WIB
TEMPO.CO, Jakarta - Mining and energy analyst Kurtubi said yesterday that Freeport must had certain binding requirements if it was to be allowed to export mineral concentrates. The requirements were aimed at ensuring Freeport's compliance with the agreed terms with the government.
"First, they [Freeport] must comply with the applicable law, requiring miners to build smelters. Second, they must keep their schedule in completing the smelters," Kurtubi sid yesterday.
The Freeport’s smelter should be completed within two or three years, as long as they are fully committed to the smelter construction, Kurtubi added.
"What's important is that the smelter must be built in Papua to boost its economy, particularly its infrastructure," he said.
Earlier, the Energy and Mineral Resources Ministry and PT Freeport Indonesia had a meeting that lasted for more than eight hours. The meeting resulted in a Memorandum of Understanding (MoU) and agreement on several points, including the amount of concentrate export duty, royalty increase and smelter building by Freeport.
RIDHO JUN PRASETYO
