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KOMPAS.com – Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said that PT Freeport Indonesia’s (PTFI) special mining business permit (IUPK) was extended until 2061. Meanwhile, PTFI’s IUPK will expire in 2041.
“Freeport, yes, that’s 2061, because it’s been around for decades in terms of requirements. There’s a reserve when we want to break up, look for it again,” said Arifin at the Ministry of Energy and Mineral Resources Building, Jakarta, quoted from Antara, Friday (17/11/2023).
Arifin also said that the majority share ownership of PTFI is currently controlled by the Indonesian Government. However, he said, technical problems such as drilling were still carried out by PTFI.
“Held by the majority of Indonesia, the ship operator is MIND ID, but management, when it comes to mining techniques, whatever, we still need someone who is good at deep drilling,” said Arifin.
Also read: Soeharto’s Quick Action to Allow Freeport to Mine Papuan Gold in 1967
Therefore, he said, PTFI is currently also focusing on underground mining.
“Now the focus is on the underground but there is also a lot below,” he said.
It is known that President Joko Widodo received Freeport McMoRan Chairman Richard Adkerson during a visit to Washington DC, United States, Monday (11/13/2023) local time.
During the meeting, President Jokowi welcomed the discussion regarding increasing Freeport shares in Indonesia and extending the mining permit which has reached the final stage.
“I am pleased to hear that the discussion of adding 10 percent of Freeport’s shares in Indonesia and extending the mining permit for 20 years has reached the final stage,” said President Jokowi to Richard Adkerson, according to a written statement received in Jakarta.
Also read: Freeport asks for relaxation of copper concentrate exports until the end of 2024
Jokowi also hopes that this can be resolved by the end of November 2023.
Request relaxation of concentrate exports
Previously, Freeport planned to ask for an extension of the relaxation of the copper concentrate export permit until the end of 2024, from previously only being granted relaxation until May 2024.
Freeport Indonesia President Director Tony Wenas said that the extension of the copper concentrate export permit was requested because the Manyar smelter factory in Gresik will only be fully operational in December 2024.
“Well, our smelter will start operating in May (2024). But it will take time to reach 100 percent production. Well, it will only reach 100 percent production in December 2024, in stages,” he said when met after the Kompas100 CEO Forum in Shangri-La Hotel, Jakarta, last October.
Also read: Freeport Indonesia Plans to Replace Coal Power Plant with Gas
Therefore, he continued, the company has been in talks with the government to be able to export copper concentrate until the end of next year.
“So it has been discussed previously with the government, the hope is that we can continue to export some of it until the end of 2024, until December,” explained Tony.
The government has banned the export of raw minerals, including copper, as of June 10 2023. However, relaxation is given to companies whose smelter construction progress is above 50 percent as of January 2023, one of which is Freeport Indonesia.
Construction of the Freeport Indonesia smelter has reached 61 percent as of April 2023, and the government has asked the mining company to complete construction by May 2024.
Also read: Jokowi Excludes Freeport from Concentrate Export Ban
The construction of this smelter was basically delayed by one year. One of them is due to the impact of the Covid-19 pandemic which has hampered the construction of smelters.
Despite being given export relaxation, Freeport Indonesia was also subject to sanctions and administrative fines by the government due to delays in building the smelter.
The company must place funds as serious collateral amounting to 5 percent of total sales in the period 16 October 2019 to 11 January 2022.
According to Tony, this sincerity guarantee should be imposed on companies that have not yet made progress on smelter construction, so there needs to be a guarantee to ensure that the smelter will be built.
Also read: Freeport Boss said, RI’s mines are the most advanced in ASEAN
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2023-11-17 14:57:00
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