Freeport, Newmont, two others obtain export quota

By Bambang Atmadja

The government has finally set the copper concentrates export quota for giant producers PT Freeport Indonesia and PT Newmont Nusa Tenggara (NNT) this year at 600,000 tons and 250,000 tons, respectively.

The two companies have expressed commitment to build domestic smelter as required by the government and have put down the 5 percent smelter guarantee fund deposit, respectively at US$115 million and $25 million.

But in order for the two firms to obtain the export approval letter, they must first agree on the main points of mining contract renegotiation proposed by the government, according to officials emerging from a Wednesday meeting led by Coordinating Minister for the Economy Chairul Tanjung.

Freeport plans to build a US$2.3 billion copper cathode smelter in Gresik, East Java, with a capacity of 400,000 tons per year, which will require about 1.6 million tons of copper concentrates per year, part of which to be supplied by NNT.

Director General of Coal and Mineral R. Sukhyar said that the export quota for two other mineral concentrate producers including PT Sebuku Iron Ore and PT Lumbung Mineral Sentosa has been set respectively at 8 million tons and 29,000 tons.

Editing by Reiner Simanjuntak