TheJakartaPost

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

Energy official confirms July 4 expiration of Freeport’s temporary permit

News Desk (The Jakarta Post)
Jakarta
Mon, June 11, 2018 Published on Jun. 11, 2018 Published on 2018-06-11T10:33:41+07:00

Change text size

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Freeport Indonesia’s Grasberg mine in Mimika, Papua, is seen in this undated photograph. Freeport Indonesia’s Grasberg mine in Mimika, Papua, is seen in this undated photograph. (JP/Nethy Dharma Somba)

A

n official at the Energy and Mineral Resources Ministry has confirmed that the temporary special mining permit (IUPK), one of the required documents that allows gold and copper miner PT Freeport Indonesia (PTFI) to export coal concentrates, will expire on July 4.

“Yes, [the IUPK] will expire. Logically, it should be extended. But I do not know the requirements, [so] just wait for a statement from the director general,” the ministry's business supervision director, Bambang Susigit, said on Sunday in Jakarta, referring to mineral and coal director general Bambang Gatot Ariyono as quoted by tribunnews.com.

The government issued a temporary IUPK for Freeport in December 2017 because the two sides had failed to complete their negotiations on the fate of PTFI's Grasberg gold and copper mine in Papua.

The temporary IUPK was issued to allow PTFI to continue exporting its coal concentrates products without canceling its old contract of work (CoW), which was signed in 1991, although Government Regulation No. 1/2017 on mineral and coal mining activities required the company to do so.

PTFI objected to changing its contract and the government took a soft approach in negotiating with company, particularly on divesting 51 percent of Freeport’s shares to Indonesian entities as required by existing laws. Under the new regulation, Freeport and other miners are also requited to construct smelters.

Bambang Susigit said Freeport could extend its temporary IUPK, but the government needed to verify progress in the company’s commitment to the terms that had been agreed, including construction on the smelter. (bbn)

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.

Share options

Quickly share this news with your network—keep everyone informed with just a single click!

Change text size options

Customize your reading experience by adjusting the text size to small, medium, or large—find what’s most comfortable for you.

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!

Continue in the app

Get the best experience—faster access, exclusive features, and a seamless way to stay updated.