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Freeport's permit extended for another month

Jakarta Post - November 2, 2018

Stefanno Reinard Sulaiman, Jakarta – The Energy and Mineral Resources extended on Thursday the temporary special mining permit (IUPK) of gold and copper miner PT Freeport Indonesia (PTFI) as the previous permit issued one month ago expired on Oct. 31.

Ministry spokesperson Agung Pribadi told the press at his office in Jakarta on Thursday that the newly issued permit would expire on Nov. 30.

The temporary permit is needed by PTFI as a legal basis to export its copper concentrates. PTFI has already had monthly temporary IUPKs since February 2018. "The issuance of the month-month permit is to extend the time for the completion of the divestment transaction," he said.

PTFI is currently still under a contract of work (CoW), which is due to expire in 2021. The government plans to issue a permanent IUPK for the company after the completion of the divestment process through which Indonesia is set to gain control of at least 51 percent of the company's shares.

State-owned mining holding company PT Indonesia Asahan Aluminium (Inalum), which represents the government, has signed agreements with Freeport-McMoran (FCX), PTFI's parent company, on the purchase of a majority stake in PTFI, which operates a gold and copper mine in Papua.

To conclude the deal, however, Inalum, which represents the government in the talks, needs to settle the payment of US$3.85 billion to FCX and the Rio Tinto Group within six months. When the deal is completed, Inalum will increase its ownership of PTFI shares from 9.36 to 51.23 percent. (bbn)

Source: http://www.thejakartapost.com/news/2018/11/02/freeports-permit-extended-for-another-month.html