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Freeport Indonesia's copper export permit extended as smelter nears completion

Jakarta Globe - May 31, 2024

Antara, Jakarta – Trade Minister Zulkifli Hasan has announced the extension of the export permit for copper concentrate from Freeport Indonesia (PTFI), as the previous permit expired on May 31.

"Yes, it's done... It will be finalized on Monday. I don't remember the exact figures of the export permit, but it's completed," said Zulkifli in Jakarta on Friday.

The Indonesian government stopped the export of unprocessed copper ores last June to promote domestic processing of raw materials as part of the country's industrialization drive. However, the government granted Freeport an exemption to continue copper exports until May 2024 as the company is building a smelter to process raw copper in East Java.

The extension for the copper concentrate export permit is valid from June 1 to Dec. 31.

At the same event, Budi Santoso, Director General of Foreign Trade at the Ministry, said PTFI's current copper concentrate export permit expires on May 31, 2024.

Budi emphasized that the permit issued by the Ministry pertains to the commodity, not the company's permit to operate in Indonesia, which will end in 2041. "We're talking about the commodity, not the company," Budi said.

The Indonesian government is currently negotiating to extend Freeport's mining permit, contingent upon the company agreeing to relinquish an additional 10 percent stake.

Freeport's existing mining permit expires in 2041, with the government currently holding a 51 percent stake in the company.

In March, President Joko "Jokowi" Widodo welcomed Richard Adkerson, Chairman & CEO of Freeport-McMoRan, at the Presidential Palace in Jakarta.

Tony Wenas, President Director of Freeport Indonesia, said that Jokowi and Adkerson's discussion primarily focused on the smelter's progress, which has surpassed 92 percent completion. The smelter is expected to be finished by May 2024, start operations by June, and reach full production by the end of 2024.

Located at the Java Integrated Industrial and Ports Estate (JIIPE), the new smelting facility is estimated to cost $3.1 billion (Rp 49.2 trillion) and will have an annual capacity of 1.7 million tons.

Source: https://jakartaglobe.id/business/freeport-indonesias-copper-export-permit-extended-as-smelter-nears-completio