The Jakarta Post
Copper and gold mining giant Freeport Indonesia has obtained a special mining permit (IUPK), which will be effective for eight months, starting on Feb. 10, while the firm continues to negotiate with the government.
“With the eight-month IUPK in place, Freeport Indonesia will be able to export its [copper] concentrates and pay export duties. While the IUPK has been issued, we will also still respect their contract of work [CoW],” said Energy and Mineral Resources Ministry secretary-general Teguh Pamudji at a press conference on Tuesday.
Freeport Indonesia will be allowed to export 1.11 million wet metric tons (wmt) of copper concentrate for a year. It will be evaluated after the first six months, taking into account the progress of smelter construction in Gresik, East Java.
(Read also: Freeport accepts govt terms)
During the next few months, the government and Freeport Indonesia will discuss investment stability, future operations, divestment and the company’s plans to build a smelter, Teguh said.
The miner will be allowed to return to its CoW if a mutual agreement between Freeport Indonesia and the government cannot be made by October. However, it will not be allowed to export any copper concentrates.
Freeport Indonesia, a subsidiary of US-based Freeport McMoRan, has refused to accept the demand from the government that it must convert its CoW into an IUPK. The company argues that an IUPK would effectively annul its CoW signed in 1991.
Freeport previously said it did not want to give up the rights listed in its present CoW. (bbn)