TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Freeport won’t reach for arbitration option
Change Size
A heavy vehicle passes an open mining site at gold and copper miner PT Freeport Indonesia’s open pit facility in Grasberg, Tembagapura, Mimika, Papua. (JP/Nethy Dharma Somba)
T
he government has said PT Freeport Indonesia will not bring it to the international arbitration tribunal as both parties are in the process of negotiation to seek solutions to their differences.
"No, they will not do it," Energy and Mineral Resources Ministry's mineral and coal director general Bambang Gatot Ariyono told The Jakarta Post in Jakarta on Thursday.
Bambang’s statement was confirmed by Freeport McMoRan Inc. chief executive officer Richard Adkerson, who said, as reported by Bloomberg, that “the arbitration wouldn’t happen if talks are proceeding well”.
(Read also: Three points not open to negotiation with Freeport, official says)
Bambang said the government had issued a special mining license (IUPK) to Freeport, which automatically allowed the company to export concentrates.
However, he added, Freeport had eight months to adapt itself to the IUPK requirements, if not, it would have to revert back to a contract of work (CoW).
"It is not a 'temporary contract', we’ve already issued the IUPK for Freeport, but it has eight months to adapt, if it fails it must to go back to a CoW and cannot export concentrates," he said.
Energy and Mineral Resources Minister Ignasius Jonan said if Freeport chose to revert to a CoW, it would still be allowed to sell to the domestic market. "It will be allowed to revert to the CoW, but with consequences of not exporting anymore," he said. (bbn)
