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Freeport permit extended another month

Jakarta Post - August 2, 2018

Jakarta – The Energy and Mineral Resources Ministry has extended PT Freeport Indonesia's (PTFI) temporary special mining permit (IUPK) for another month after it expired on Tuesday.

"Yes, the Freeport IUPK has been extended until Aug. 31," Energy and Mineral Resources Ministry mineral and coal director general Bambang Gatot Ariyono said on Wednesday as reported by kontan.co.id.

With the extension of the permit, PTFI, the local affiliate of American mining giant Freeport-McMoRan Inc., can continue exporting copper concentrate.

Bambang explained that Freeport had been given an extension on its temporary permit while the government waited for the completion of negotiations on four points – divestment of Freeport shares, the construction of a smelter, investment certainty and a contract extension to 2041.

Previously, Energy and Mineral Resources Minister Ignasius Jonan said the government would issue a regular IUPK after completion of negotiations on the four issues.

PTFI received its first temporary IUPK in February 2017, which expired eight months later. The government then extended the IUPK for a second time until December 2017. The third extension expired on July 4 and the fourth IUPK extension expired on Tuesday.

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. (bbn)

Source: http://www.thejakartapost.com/news/2018/08/01/freeport-permit-extended-another-month.html