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.

Jakarta Post

Freeport yet to extend operating permit: Ministry

  • News Desk

    The Jakarta Post

Jakarta   /   Thu, July 27, 2017   /   12:53 pm
Freeport yet to extend operating permit: Ministry A worker monitors the mineral flotation process to produce copper, gold and silver concentrates at one of Freeport Indonesia's facilities in Papua. (Kompas/B. Josie Susilo Hardianto)

The Energy and Mineral Resources Ministry has said that gold and copper mining operator PT Freeport Indonesia had yet to obtain an extension to their operating permit.

Energy and Mineral Resources Ministry secretary general Teguh Pamudji said on Wednesday that the extension of Freeport's operating permit, which would expire in 2021, was still being negotiated by government officials and company representatives.

"The validity and legal basis of (Freeport's) mining operation after 2021 will be the IUPK, which [Freeport] has not agreed to until now," Teguh said in Jakarta as quoted by on Thursday.

Read also: Freeport to issue new shares to meet divestment requirement

The IUPK, or the special mining permit, is set to replace the contract of work (CoW) scheme signed in 1991 by PT Freeport, a subsidiary of the American mining giant Freeport-McMoRan Inc.

The extension would be granted if Freeport agreed to convert its contract from a CoW into the IUPK, said Teguh, adding that the company could apply to extend its operating permit until 2041, or by two decades.

"Under Government Regulation No. 1/2017, IUPK holders are eligible for a permit extension of 2 x 10 years,” he said.

Freeport Indonesia's corporate communications vice president Riza Pratama said an extension through 2041 would bee needed for the company to meet the requirements of the government regulation.

An IUPK requires the permit holder to construct a smelter, as well as to divest 51 percent of its shares to Indonesian entities. (bbn)