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Calls mount for govt to deny Freeport contract extension

Digging deeper: An official has threatened gold and copper mining firm PT Freeport Indonesia with default for allegedly stalling the divestment of 10

Ayomi Amindoni (The Jakarta Post)
Thu, December 17, 2015

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Calls mount for govt to deny Freeport contract extension

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span class="inline inline-center">Digging deeper: An official has threatened gold and copper mining firm PT Freeport Indonesia with default for allegedly stalling the divestment of 10.64 percent of its shares to the government. (Kompas/Iwan Santosa)

The government has been urged to immediately declare that the contract of work of miner Freeport Indonesia will not be extended when the current contract expires in 2021.

Energy think-tank Indonesia Resources Studies (IRESS) on Thursday called on the government to take control of the mine through a consortium of region- and state-owned enterprises.

"Every attempt made to limit and eliminate the right of state control through state companies is a betrayal of the Constitution,'€ IRESS executive director Marwan Batubara said.

Marwan added that Indonesia '€“ as the owner of the mineral resources '€“ should receive a greater portion of the profit and greater benefits than the contractor.

IRESS invited a range of parties to sign a petition to call upon the government to uphold the sovereignty and dignity of the nation.

"All components of the nation and all the people of Indonesia are required to support and join the movement in order to achieve all the demands listed in the petition," he said.

The petition also encouraged the Corruption Eradication Commission (KPK) to actively oversee the completion of the contract renegotiation process and ensure Freeport'€™s contract of work was not extended.

The petition also demanded that Freeport pay compensation for the environmental damage caused by its mine.

Lawmaker Iskan Q Lubis said the House of Representatives would establish a special committee to investigate government officials alleged to have made a backroom with Freeport McMoRan Inc., the US company that owns 90.64 percent of Freeport Indonesia.

"The Energy and Mineral Resources Minister said the letter to Freeport was approved by the President. We will establish a special committee to investigate the case," Iskan asserted. (dan)(+)

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