Government Extends Mining Permit for Freeport
Date 5 Juli 2018
The Government has decided to extend the Special Mining Permit (IUPK) for US mining company PT Freeport Indonesia (PTFI) for one month, or until 31 July.
“The extension of the permit is contained in Ministerial Decree of Energy and Mineral Resources Number 1872/K30MEM/2018 signed on 29 June 2018,” Coal and Mineral Director General of Ministry of Energy and Mineral Resources Bambang Gatot Ariyono in a press conference at the Ministrys office in Jakarta, Wednesday (4/7).
Bambang went on to explain that the extension had considered four issues, namely, contract extension, divestment, smelter construction, and fiscal and legal certainty for Freeports planned long-term investment.
The regulation is the fourth amendment to Ministerial Regulation Number 413 of 2017 on IUPK for PT Freeport Indonesia.
“The point is that Ministerial Regulation Number 413 of 2017 is amended to grant IUPK for Production Operations to PTFI provided that this IUPK is in force from the issuance of Ministerial Regulation Number 413,” Bambang explained.
Following the issuance of IUPK extension, Bambang said that the PTFI could export processing products in a certain amount by paying export duty in accordance with the prevailing regulations.
Bambang added that a team consisting of Ministry of the Environment and Forestry, PTFI, and state-owned mining holding company PT Indonesia Asahan Aluminium (Inalum) are settling environmental issues.
“PTFI is requesting for more time to finish this. However, as for other activities such as divestment, smelter construction and extension of the operation of the changes, they have been in the finalization process,” Bambang concluded.
For the record, Freeport’s IUPK was supposed to expire on 4 July 2018. President Joko Jokowi Widodo has said that the Government will still obtain at least 51 percent of Freeport’s share. (Ministry of Energy and Mineral Resources Communications Team) (MUR/EP/YM/Naster).