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Economy in brief: Freeport export quota cut to 1.2m wmt
In a last minute change, the Energy and Mineral Resources Ministry has decided to lower the export quota of gold and copper miner PT Freeport Indonesia (PTFI) from the previous 1
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span>In a last minute change, the Energy and Mineral Resources Ministry has decided to lower the export quota of gold and copper miner PT Freeport Indonesia (PTFI) from the previous 1.66 million wet metric tons (wmt) to only 1.2 million wmt of copper concentrate for the next one-year period.
The ministry’s minerals business supervision director Bambang Susigit initially told The Jakarta Post last Thursday that his team had evaluated PTFI’s proposal and agreed to grant the company a one-year export quota of 1.66 million wmt until Feb. 17, 2019, up nearly 50 percent from the previous quota of only 1.11 million wmt.
However, Susigit told the Post on Monday the ministry’s mineral and coal director general Bambang Gatot Ariyono eventually only agreed to set PTFI’s quota at 1.2 million wmt, in line with the agreed volume in the company’s 2018 work program and budget (RKAB).
“The export permit recommendation for a quota of 1.2 million wmt was signed on Friday evening,” Susigit said. “The director general refused to give PTFI more than that.”
PTFI, the local unit of the American mining giant Freeport-McMoRan (FCX), needs to obtain that recommendation before submitting a proposal to the Trade Ministry to get a new export permit. Such a recommendation is given to miners able to meet the targeted development progress of their new smelters.
Susigit said the development progress of PTFI’s new smelter worth US$2.2 billion in Gresik, East Java, had reached 2.43 percent.
