Freeport negotiates export permit requirement
Wednesday, February 3 2016 - 12:59 AM WIB
Minister of Energy and Mineral Resources Sudirman Said stated that given the current weak commodity prices, PT Freeport may find difficulties to meet the deposit requirement. As such, the government is still looking for other form of requirement that must be met by the company including the possibility of lowering the deposit requirement, he added.
?But, we want the company to be able to show its seriousness equivalent to the one (deposit requirement) that we?ve asked. It?s still being negotiated,? Sudirman said on Tuesday.
The minister has earlier requested PT Freeport to make the $530 million deposit as a key requirement for the company to be able to obtain recommendation letter from the ministry to get extension of export permit from the Ministry of Trade. The government wants PT Freeport to make the deposit to show its seriousness in developing the required domestic smelter.
Minister Sudirman made the new deposit requirement as the progress of PT Freeport?s planned domestic smelter in Gresik, East Java, so far has only reached about 14 percent, far below the 30 percent requirement to get extension of export permit for another six months. The company has been required by the government to build domestic smelter to be able to continue copper concentrates export, which would be banned starting 2017.
Meanwhile, Kontan quoted PT Freeport spokesman Riza Pratama as saying that production activity remains normal despite export suspension. ?So far, our production remains normal, no impact from export suspension,? he said. (*)