Freeport negotiation deadline may be extended

By Thomas Sembiring

Minister of Energy and Mineral Resources Ignasius Jonan said there?s possibility that the October 10 deadline for the conclusion of ongoing negotiations between the government and gold and copper giant PT Freeport Indonesia will be extended.

He said that if the current negotiations could not be concluded by the initial deadline, the government will approve request by PT Freeport for an extension of the deadline.

Jonan, however, expected that the talks would be concluded before the end of this year. ?God Willing, it can be concluded (by October 10). But if not, and if Freeport asks for an extension, we?ll approve it, but we expect (the negotiations) can be concluded before the end of this year,? he said.

PT Freeport, a local subsidiary of US Freeport McMoRan Inc, has been engaged in intensive negotiations with the government to resolve disputes following the introduction of new government regulations earlier this year. Freeport has agreed to meet the government?s demand for it to develop domestic copper smelter, and to divest up to 51 percent shares to Indonesian investors. But details on the divestment process as well as the value of the shares have yet to be agreed. The company has also demanded fiscal stability for its multi-billion dollar investment in the country, a request Jonan said is still being negotiated with the Ministry of Finance. PT Freeport has also demanded for guarantee of its mining operations in Papua Province until 2041.

Editing by Reiner Simanjuntak