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Trade Ministry issues concentrate export permit for Freeport
The Trade Ministry has issued a permit allowing PT Freeport Indonesia to export its supply of copper concentrate, as the mining giant continues to settle its differences with the government on matters relating to the conversion of a Contract of Work (CoW) signed in 1991 into a special mining license (IUPK)
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A worker monitors the mineral flotation process to produce copper, gold and silver concentrates in one of Freeport Indonesia's facilities. (Kompas/B. Josie Susilo Hardianto)
T
he Trade Ministry has issued a permit allowing PT Freeport Indonesia to export its supply of copper concentrate, as the mining giant continues to settle its differences with the government on matters relating to the conversion of a Contract of Work (CoW) signed in 1991 into a special mining license (IUPK).
The export permit will be effective up to Feb. 16, 2018.
“The letter [permit] for export has been issued. The company can now collect its license,” said Trade Ministry’s oversea trade directorate general Oke Nurwan as reported by tempo.co on Tuesday.
(Read also: Freeport submits proposal to obtain export permit)
Oke said Freeport proposed the export extension on April 21. The ministry is allowing the company to export 1.13 million tons of concentrate for a year. The permit was issued after the Energy and Mineral Resources Ministry issued an IUPK on Feb. 10.
Representatives of both Freeport and the government are currently in the process of negotiating certain aspects of the IUPK, including the development of a smelter and the sustainability of the company’s business in the country.
Last year, the company reportedly exported `1.17 million tons of copper concentrate to several countries, including Japan, South Korea, China, India and the Philippines.
Meanwhile, Freeport Indonesia spokesman Riza Pratama said the miner will gradually increase its output, after production ceased due to the government’s ban on its exports when Freeport rejected the conversion of its CoW into an IUPK. (bbn)
