Freeport, Govt agree to increase royalty

PT Freeport Indonesia has agreed to increase royalty to 3.75 percent from 1 percent at present as part of renegotiation of its contract of works with the Indonesian government, Kontan Daily reported on Tuesday.

Vice Minister of Energy and Mineral Resources Rudi Rubiandini said that the increase in the royalty was part of six points currently being renegotiated with the government.

?The royalty is just part of the several issues being renegotiated with the government,? he said.

In addition to royalty, other issues being renegotiated with the government include the size of mining areas, the extension of the contract, the obligation to process ores in local smelters, the divestment obligation, and the obligation to use goods and services from the domestic market.(*)