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Freeport Contract Extension yet to be Decided: Official

Translator

Editor

5 July 2017 08:52 WIB

Freeport mining site. ANTARA/Muhammad Adimaja

TEMPO.CO, Jakarta - Energy and Mineral Resources Ministry special staff Hadi M. Djuraid said that the government has yet to make any decision on PT Freeport Indonesia’s contract extension.

According to him, a coordinated meeting held yesterday at the Finance Ministry building did not specifically discuss PT Freeport Indonesia contract extension.

Read: Indonesia Extends Freeport Operation Permit

Hadi explained that the main topics being discussed were divestment and investment guarantee.

The statement was made to clarify the news titled “Indonesia Extends Freeport Operation Permit” published on Tempo.co yesterday.

Read: Freeport Seeks New Mine Deal with Indonesia

Hadi stressed that PT Freeport Indonesia operating permit has not been extended to 2041 as written on Tempo.co by quoting the statement issued by Fajar Harry Sampurno, Deputy for Mining, Strategic Industry and Media of State-Owned Enterprise Ministry, one of the attendees of the meeting.

According to Hadi, the Energy Ministry did not approve of Freeport operating permit. The contract extension is currently being discussed by the government and the mining company and no decision has been made.

Read: Wanted a Win-Win Agreement with Freeport

In accordance with the applicable laws and regulations, the contract may be extended twice, for periods of ten years maximum, with the following requirements: to build a smelter and to divest 51 percent of shares. "In addition, it has to meet other requirements in relation to corporate performance, environmental issues and post-mining guarantee," Hadi said.

Hadi added that the implementation of the requirements is still being discussed by the government and Freeport.

Earlier, Fajar Harry Sampurno, Deputy for Mining, Strategic Industry and Media of State-Owned Enterprise Ministry, said that yesterday’s coordinated meeting discussed four issues: Freeports operating permit extension, smelter construction, divestment and investment stability.

SETIAWAN ADIWIJAYA



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