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Freeport sets aside $100m for smelter
Mining giant PT Freeport Indonesia has announced that it will set aside 5 percent of its total investment, or US$100 million, as a guarantee to develop a smelter in the country, but the exact location has yet to be confirmed
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ining giant PT Freeport Indonesia has announced that it will set aside 5 percent of its total investment, or US$100 million, as a guarantee to develop a smelter in the country, but the exact location has yet to be confirmed.
However, in return, Freeport would not be willing to pay a 25 percent export duty to the Finance Ministry.
'We do not know the mechanism for depositing the guarantee, but the figure is around $100 million,' Freeport Indonesia CEO Rozik B. Soetjipto said as quoted by kontan.co.id on Tuesday.
Separately, the Energy and Mineral Resources Ministry's director for minerals, Dede I. Suhendra, said that the 5 percent guarantee would be returned to the firm when construction of the smelter was completed in 2017.
'The most important thing is that the smelter starts operating in 2017. The guarantee is aimed at reducing the export duty,' Dede said.
