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Freeport's Export Permit Extended  

31 July 2015 21:12 WIB

Grasberg Mine milik PT. Freeport Indonesia di Tembagapura, Mimika, Timika, Papua, 15 Februari 2015. Executive Vice President dan General Manager Operational Freeport, Nurhadi Sabirin mengatakan terdapat peluang tambang tersebut menjadi tempat wisata setelah wilayah itu habis masa eksplorasinya. ANTARA/M Agung Rajasa

TEMPO.CO, Jakarta - The government has officially extended Freeport's permit to export copper concentrate on Friday, July 31, 2015. Bambang Gatot Arianto, the director general of mineral and coal at the Energy and Mineral Resources Ministry, said that the letter of permit extension had been signed by the Trade Minister.

"It's official. Freeport's commitment has been realized," Bambang said on Friday, July 31, 2015 in Jakarta.

The Energy and Mineral Resources issued the recommendation letter for Freeport's permit extension on Wednesday, July 29, 2015 allowing the giant mining company to export 775,000 tons of copper concentrate for next six months.

Bambang explained that Freeport had met the requirement set by the Energy and Mineral Resources related to its smelter construction. Currently, the company's smelter construction in Gresik has progressed to 11 percent. Under Finance Ministry's Regulation Number 153/PMK.011/2014, Freeport is entitled to export duty reduction from 7.5 percent to five percent.

Freeport has also paid its commitment fee under Energy and Mineral Resources Minister’s Regulation Number 11/2014, requiring the mining company to pay 60 percent of the total smelter construction cost on a semester basis to a government-owned bank. In the period of January-June 2015, the smelter construction cost in Gresik reached US$280 million.

"We will continue to supervise the smelter construction," Bambang said.

ROBBY IRFANY



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