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Freeport gets permit extension as divestment process incomplete

Jakarta Post - September 4, 2018

Jakarta – Gold and copper mining company PT Freeport Indonesia (PTFI) has been given a one-month special mining permit (IUPK) extension, which is required for the company to import its copper concentrates.

Energy and Mineral Resources Ministry mineral business supervision director Bambang Susigit said in Jakarta on Monday that the extension for PTFI, a subsidiary of Freeport-McMoRan Inc (FCX), was signed by Energy and Mineral Resources Minister Ignasius Jonan on Aug. 31.

"[The IUPK] is extended for another 30 days," Bambang said at a hearing with the House of Representatives Commission VII on energy affairs, adding that the extension was outlined in a 2018 ministerial decision.

PTFI received its first temporary IUPK in February 2017. It expired eight months later. The government then extended the IUPK for a second time until December 2017. Its third extension expired on July 4. Since then, the permit has been extended on a monthly basis.

The government, represented by state-owned mining holding company PT Indonesia Asahan Aluminium (Inalum), signed a heads of agreement with Freeport-McMoRan last month. Under the agreement, the government will get a majority stake in PTFI for US$3.85 billion. The divestment of Freeport's shares have not reached a final agreement.

State-Owned Enterprises Ministry strategic industry and media affairs undersecretary Fajar Harry Sampurno said the negotiations on the divestment of 51 percent shares of PTFI were expected to be completed this month.

"On the divestment, there are several issues that should be resolved. The agreement is expected to be completed this September," he added as quoted by kontan.co.id. (bbn)

Source: http://www.thejakartapost.com/news/2018/09/04/freeport-gets-permit-extension-as-divestment-process-incomplete.html