Thursday, 21 November 2019

Indonesia Extends Freeport Operation Permit

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  • TEMPO.CO, Jakarta - The Indonesian Government has agreed to extend Freeport Indonesia’s permit to operate its business parallel to building a smelter. The agreement was reached in a meeting at the Finance Ministry on Tuesday, July 4.

    According to the deputy of mining, strategic industries, and media at the State Owned Entreprises (SOE) Ministry, Fajar Harry Sampurno, the meeting mostly discussed four items on Freeport. The lengthening of its mining operations, establishing a smelter, share divestment, and investment stability.

    Read: Freeport Wants Assurance of Investment Stability

    “Two have been agreed upon by the SOE Minister; the permit extension and smelter establishment are a must,” said Fajar Harry Sampurno today.

    According to Fajar, Freeport’s operation is extended for two decades until 2041 into two parts. The first ten years has been approved and will be valid after Freeport’s current permit expires in 2021. Meanwhile, the second half of the permit would first be evaluated before the company is officially permitted to operate for another ten years.

    Read: Freeport Resumes Mineral Concentrate Exports

    Freeport must also establish a smelter in Indonesia as the permit obligates the company to build a processing facility for their mining products. Indonesian government gives a five-year deadline for Freeport to build a smelter that is fully operable by 2022.

    On the 51 percent share divestment, Harry said, the SOE is ready to execute.