Freeport Negotiations Given Waklu a month
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Freeport negotiations are given a month
The Ministry of Energy and Mineral Resources extended PT Freeport Indonesia's special mining permit for a month or until the end of July 31, 2018. The month was a reference for PT Indonesia Asahan Aluminum (Persero) or Inalum to complete negotiations with mining companies originating from The United States. The permit is a requirement for Freeport to be able to export copper concentrate.
ESDM Ministry's Mineral and Coal Director General Bambang Gatot Ariyono, in Jakarta, said the basis for extending the special mining business permit (IUPK) for only a month was assuming negotiations could be completed this month. But the government does not have a backup plan if the negotiation process is deadlocked. This negotiation is related to the obligation to divest Freeport shares by 51 percent to the Indonesian side.
IUPK is one of the requirements for mineral mining companies to be able to export concentrates. Another requirement is the obligation to build smelters (processing and refining facilities) in the country. The company is also required to release its shares at least 51 percent after 10 years of production.
These matters, in addition to tax obligations and extension of operations, are being negotiated between Inalum and Freeport. Government share ownership through Inalum is still 9.36 percent. Previously, President Joko Widodo gave a target for the negotiation process with Freeport to be completed by April 2018.
Head of Corporate Communications of Inalum Rendi A Witular is optimistic that the negotiation process will run smoothly and finish this month. Differences in views between parties have increasingly diminished. However, he refused to give a more detailed explanation of the different views.
Kompas, Page-17, Thursday, July 5, 2018
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