Gov't to Extend Freeport Contract Until 2031?

The Government of Indonesia signals a contract extension to PT Freeport Indonesia until 2031. The extension of this contract will also be in line with Freeport's operating license and export concentrate. 

Director General of Mineral and Coal, Ministry of Energy and Mineral Resources, Bambang Gatot explained in the Government Regulation No. 1 of 2017 that Freeport is entitled to a contract extension twice 10 years when Freeport has agreed to change from a contract of work (KK) to a special mining business license (IUPK ). 

However, the extension of this concentrate export permit is not immediately assessed until 2041. An extension of up to 2041 will be awarded if the negotiation package can be fulfilled by Freeport. 

'Anyway, that can be done twice in 10 years.It's already that, if given means until 2031,' said Bambang when met at the Office of the Ministry of Energy and Mineral Resources, Tuesday (18/7). 

Bambang explained later after the granting of the permit, the government will review what kind of consistency Freeport in complying with the regulations in force in Indonesia. This refers to a package of negotiations that are still being discussed by the government and Freeport. 

'Yes it is still being discussed again, it's all one package, one can not be one Fiscal, contract extension, smelter, the certainty of operation, divestment its final decision,' said Bambang. 

Previously, Deputy Minister of EMR, Arcandra Tahar said today the government through the Ministry of EMR and Ministry of Finance divides the task in discussing the points of agreement with Freeport. Later, the points of the agreement will be presented to Freeport McMoran CEO Richard Adkerson at the end of next month. 

Arcandra said the Ministry of Energy and Mineral Resources is tasked with resolving matters related to the extension of the operation and construction of the smelter. While the Ministry of Finance discusses the related divestment and investment stability that contains about fiscal. 

'There is a division of tasks between EMR and MoF and each of our duties is carried out. We finish according to the target time. This team is working to solve it. Later when there is a temunya point I update, 'said Arcandra yesterday at the Presidential Palace Complex, Monday (17/7). 

The government is targeting a discussion on the extension of the Freeport contract to be completed before the deadline in October. Even the government predicts this negotiation will be completed by the end of July following the planned arrival of Freeport McMoran CEO Richard Adkerson at the end of July.