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Freeport remains confused over new mining rules
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A heavy vehicle passes a mining site at gold and copper miner PT Freeport Indonesia’s open pit facility in Grasberg, Tembagapura, Mimika, Papua. (JP/Nethy Dharma Somba)
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old and copper miner Freeport Indonesia is still reluctant to convert its contract of work (CoW) to a special mining permit (IUPK) as it says the concept of the latter remains unclear.
Freeport Indonesia spokesman Riza Pratama said the firm, a unit of US giant Freeport-McMoRan, needed to fully understand what an IUPK was in order to ensure investment stability.
"It all really depends on the IUPK, which the government has yet to explain to us. This means we haven't been able to export and our storage facility is getting full," he told reporters at the House of Representatives building in Central Jakarta on Thursday.
"However, we hope the government can show us the way because, right now, we do not feel comfortable investing."
Read also: Government stands firm as Freeport threatens to cut production)
Last month, the government issued a fourth revision of Government Regulation No. 23/2010 on the management of mineral and coal businesses, which allows miners to continue exporting copper concentrate, certain amounts of low-grade nickel and washed bauxite.
However, miners operating under a CoW will have to convert it to an IUPK to obtain an export permit, which would be reviewed every six months.
Since the regulation was issued, Freeport Indonesia has not been able to export its copper concentrate and has threatened to downsize production and its workforce. (bbn)
