Freeport ready to talk with govt over forest use

Copper and gold miner PT Freeport Indonesia (PTFI), a subsidiary of American mining giant Freeport McMoRan Copper & Gold, insists it has exclusive rights to carry out mining operations in its concession but is ready to talk with the government over forest use issue.

"The Contract of Works (CoW) of PTFI provides exclusive rights to carry out mining operation in the CoW area

"Still, PTFI is ready and continues holding talks with the government over the possibility of PTFI requesting leasehold permit for several areas inside the PTFI CoW area," Budiman Moerdijat, PTFI's Manager Corporate Communications, said in a statement.

The firm made the statement following reports that the Forestry Ministry had warned it for conducting mining activities in protected forest areas without a prior approval.

Forestry Minister Zulkifli Hasan said in Jakarta on Monday a warning letter had been sent to PTFI asking the company to stop the mining activities until the forest-use permit it had applied was issued.

Budiman said PTFI got its CoW long before the enactment of Forestry Law No. 41/1999. Law No. 19/2004,. which is an amendment to the 1999 forestry law, stipulates that mining permit or mining agreement which had existed prior to the enactment of Law No.41/1999 remains valid.

The Constitutional Court has confirmed the validity of Law No. 19/2004, Budiman said, adding that PTFI will continue respecting all provisions stated in its CoW. (godang)