Freeport insists for extension of mining operations until 2041

Gold and copper giant PT Freeport Indonesia has insisted for the government to extend the company?s mining operations until 2041 as it plans to make billions of dollars in new investments.

The government previously told the media that it was willing to extend PT Freeport?s current mining permit, which is set to expire in 2021, by another 10 years, or until 2031, on the condition that the company agrees to a number of requirements.

PT Freeport Spokesman Riza Pratama said late Tuesday that while the company has yet to officially receive the government?s offer, the company remains with its initial position for certainty over its request for the extension of the mining operations until 2041.

He pointed out that PT Freeport is set to invest at least US$15 billion in underground mine in Papua, and another more than $2 billion for a planned copper smelter, in Gresik, East Java Province.

PT Freeport, a local subsidiary of US-based Freeport McMoRan Inc, and the government have been locked in intensive negotiations over the future operations of the company following new regulation introduced by the government. The negotiation is expected to be concluded in October of this year. Aside from the issue of contract extension, other issues include obligation for the company to divest up to 51 percent of its interest to Indonesian investors, build domestic smelter, and covert its mining permit status from contract of work to special mining business license (or IUPK). (*)