Freeport CEO meets minister following new mining rules

By Thomas Sembiring

Petromindo|Lucky

Visiting President and CEO of US-based Freeport McMoRan Copper & Gold Inc, Richard Adkerson, met on Friday with Minister of Energy and Mineral Resources Ignasius Jonan following the issuance a day earlier of the new Government Regulation No 1/2017 (GR No 1/2017) and its implementing ruling Ministerial Regulation No 5/2017.

GR No 1/2017 is the fourth revision of Government Regulation No 23/2010 on mineral and coal businesses management, which allows miners to continue export of mineral concentrates such as copper concentrates produced by the giant PT Freeport Indonesia, a local subsidiary of the US firm. The previous regulation stipulated that mineral concentrates could no longer be exported starting January 12 of this year.

But under the new regulation, miners must meet certain requirements to be allowed to continue export including converting their mining permit from contract of work to special mining business license (IUPK), making official commitment to build domestic smelter within five years, and pay export tax. The regulation also requires mining firms owned or controlled by foreign investors to divest up to 51 percent of their stake to Indonesian investors.

Freeport officials declined to provide much comment after the meeting with Ignasius. PT Freeport Spokesman Riza Pratama said that his company will first study the new regulation and see how it would affect its operation. ?The Indonesian government has just issued a new regulation on mineral export policy,? he said in a text message to Petromindo.com.

This portal previously reported, quoting a source, that PT Freeport has objected to the conditions set by the government for continuing export of mineral concentrates.

Editing by Reiner Simanjuntak