ESDM has not extended Freeport's export permit
10:10 AM
Add Comment
The Ministry of Energy and Mineral Resources (ESDM) is still evaluating the request for an extension of copper concentrate export permit recommendations submitted by PT Freeport Indonesia.
The export permit recommendations that were valid for a year ended March 8 yesterday. Recommendations for export licenses can be extended for a year if they meet the requirements including the progress of the construction of a mineral refining facility (smelter).
Smelter
ESDM Ministry's Director of Mineral Development and Business Yunus Saefulhak said Freeport's request was still in the process of being evaluated. But he did not explain how long the evaluation lasted.
"(Application for renewal) Just entered. An evaluation is underway, "Yunus said in Jakarta.
The evaluation conducted by the ESDM was based on the results of the verification of an independent verifier related to the progress of the Freeport smelter. The verification results stated that the smelter's progress reached 4.88%, exceeding the work plan target of 4.09%. The 4.88% progress is in the form of land compaction and is targeted to be completed within the next two months.
Yunus said that the extension of export recommendations was given if the smelter's progress was at least 90% of the work plan per six months. The export recommendation is valid for one year with two evaluations per six months. If each evaluation does not meet the requirements, the export permit is revoked.
Riza Pratama
Separately, Freeport Indonesia spokeswoman Riza Pratama revealed the expiration of the export permit period had not affected shipping activities. He hoped the government would immediately extend the export permit recommendations. "Still in the process at the Ministry of Energy and Mineral Resources. There is no influence on exports yet, "he said.
Freeport's smelter with a capacity of 2 million tons of copper concentrate and integrated with a slime anode smelter of 6,000 tons. The investment reached the US $ 3 billion with the majority of funding coming from banking syndication. The location of the smelter is in the Gresik industrial area, East Java (Java Integrated Industrial and Port Estate / JIIPE).
JIIPE
Riza said in the application for extension of export licenses accompanied by concentrated export volumes. He did not disclose the amount of export volume proposed. Riza only mentioned that the requested export quota was higher than the previous volume. Freeport Indonesia's export quota of 198,200 tons was recorded in March 2019 yesterday.
Then get additional concentrate from the stockpile so the quota becomes 700 thousand tons. The export volume in 2019 was lower than in the previous period. Because Freeport's production last year entered a transition period from the Grasberg open-pit mine to an underground mine.
the Grasberg open-pit mine
In 2020, the Grasberg open pit will no longer be cultivated by Freeport. Riza revealed that the export volume was higher compared to the 2019 period because production had been supplied from underground mines. "Now we produce it from the underground," he said.
Investor Daily, Page-9, Tuesday, March 10, 2020
0 Response to "ESDM has not extended Freeport's export permit"
Post a Comment