Freeport seeks export quota of 1.42m tons

Gold and copper giant PT Freeport Indonesia has applied for a renewal of its current export permit, which is set to expire on August 8, seeking for copper concentrates export quota of 1.42 million tons for the next six-month period, up from 1.03 million tons quota set under the current permit, Kontan reported on Wednesday.

Ministry of Energy and Mineral Resources (MEMR) Spokesman Sujatmiko was quoted by the paper as saying that the Directorate General of Mineral and Coal at the ministry is still in the process of evaluating the PT Freeport request for the export permit renewal. The company must obtain recommendation letter from the ministry to be able to get export permit renewal from the Ministry of Trade.

?For the next six months, (PT Freeport) is asking for 1.42 million tons (of export quota,? he said.

Director General of Mineral and Coal Bambang Gatot Ariyono said that his office is still evaluating the request. ?According to Ministerial Regulation No 5/2016, it (export) can still probably be allowed. We?re still evaluating it. But the export tariff remains at 5%,? he said.

The MEMR has set a number of conditions for getting the recommendation letter, particularly progress of PT Freeport?s planned copper smelter in Gresik, East Java.

PT Freeport, a subsidiary of US-based Freeport McMoRan Copper & Gold Inc, plans to develop a copper smelter in Gresik with a capacity of 2 million tons per year.

The government initially expected the US$2.3 billion smelter to be completed in 2017 as export of copper concentrates will no longer be allowed starting January 11, 2017, as part of a policy aimed at developing domestic refining industry to generate greater value added for the country from mineral resources. (*)