TEMPO.CO, Jakarta - U.S.-based mining company Freeport-McMoRan Inc. has threatened to take Indonesia to international arbitration over mining permit dispute wherein its subsidiary PT Freeport Indonesia, the operator of Grasberg gold and copper mining complex in Papua, refuses to switch over its Contract of Work (CoW) to a special mining permit (IUPK).
Freeport-McMoRan president director Richard C. Adkerson said that negotiation with the Indonesian government is underway. Freeport has sent a letter to Energy and Mineral Resources Minister Ignasius Jonan on Friday last week explaining the dispute. Either party may take the dispute to international arbitration if no agreement was reached 120 days after the letter was sent.
Freeport-McMoran Inc. financial report as of December 2016 shows that the company has 26.9 billion pounds of copper and 25.8 million ounces of gold in reserve in Papua.
Freeport copper reserve in Indonesia is the third largest in the world after that of North and South America. Freeport’s gold reserve in Indonesia is its world’s biggest since it only has two mines i.e. in Indonesia and North America, which only has 0.3 million ounces of gold in reserve.
Grasberg is the world’s largest gold mine by production. Investingnews.com on December 1, 2016, ranked world’s 10 largest gold mines by production after analyzing the data from Thomas Reuters GFMS Gold Mine Economics. Below is the list the world’s largest mines.
1. Grasberg, Papua, Indonesia.
- Gold production: 1.23 million ounces.
2. Goldstrike, Nevada, United States.
- Gold production: 1.05 million ounces.
3. Cortez, Nevada, United States
- Gold production: 999,000 ounces.
4. Pueblo Viejo, Dominican Republic.
- Gold production: 953,000 ounces.
5. Yanacocha, Cajamarca, Peru.
- Gold production: 918,000 ounces.
6. Carlin, Nevada, United States.
- Gold production: 886,000 ounces.
7. Lihir, Papua New Guinea.
- Gold production: 805,000 ounces.
8. Boddington, Australia.
- Gold production: 794,000 ounces.
9. Olimpiada, Russia.
- Gold production: 760,100 ounces.
10. Kalgoorlie Super Pit, Australia.
- Gold production: 640,000 ounces.
ABDUL MALIK | VINDRY FLORENTIN
