Freeport, Newmont obliged to build smelters: Hatta

US copper and gold miners PT Freeport Indonesia and PT Newmont Nusa Tenggara (NNT) are obliged to build smelting plants to process their products in the country so that their operations would create more added value for the local people, a senior minister said as quoted by Kompas.

Coordinating Minister for the Economy Hatta Rajasa said during an official visit to Banjarmasin, South Kalimantan, said the obligation to build the processing facilities was part of the requirements for mining companies to operate in Indonesia.

?The government should be firm in dealing with companies which still refuse to meet the obligation,? he said, citing that local governments should learn from the provincial administration of Southeast Sulawesi, which successfully pressured mining giant Inco to build a smelter to process its nickel ores in the province.

Hatta said that Freeport and Newmont should follow suit so that their operation would create more employment for the local people. He said that the government would not discriminate against certain investors in implementing the mining law. ?We will pressure Freeport too. They should first process their copper and gold ores before exporting them,? he added. (*)