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Freeport, govt lock horns over copper export duty
PT Freeport Indonesia plans to file a lawsuit against the government over revised export duties on mineral concentrates but the government said it will defend the policy.
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Gold mine: President Joko “Jokowi” Widodo (right) speaks with Richard Adkerson (left), director of the Freeport-McMoRan copper and gold mining company at the Grassberg mine in Mimika, in what is now Central Papua province, during Jokowi’s visit on Sept. 1, 2022. In 2018 Indonesia acquired Freeport, a giant United States company operating in the country. (AFP/Presidential Palace)
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T Freeport Indonesia (PTFI) plans to file a lawsuit against the government over revised export duties on mineral concentrates imposed to favor the country’s downstream agenda, according to mining giant Freeport-McMoran's quarterly report published in US Securities and Exchange Commission (SEC) filling on Thursday.
Freeport-McMoran controls 48.76 percent of PTFI ownership with the rest owned by state-run miner holding MIND ID.
Freeport argues that under its 2018 mining license, no duties are required once its smelter is at least half-complete. The government verified that the company’s smelter construction progress had exceeded 50 percent as of this March.
“PTFI is continuing to discuss the applicability of the revised regulation with the Indonesian government and will contest, and seek recovery of, any assessments,” said mining giant Freeport-McMoran's report regarding its Indonesian unit.
Read also: Indonesia to allow Freeport, Amman Mineral to ship copper concentrate until 2024
The government previously planned to ban exports of bauxite and copper in June, as it had with nickel in 2020, while allowing several companies including Freeport to continue shipping minerals until mid-2024 to give them time to finish the construction of their smelters.
