Freeport seeks for higher export quota

Gold and copper giant PT Freeport Indonesia has requested for higher export quota of copper concentrates for the next six months, according to a senior government official.

Director General of Mineral and Coal Bambang Gatot Ariyono said over the weekend that the company was seeking an export quota of more than 1 million tons, compared to the previous six-month export of quota of 775,000 tons.

He said that the company?s realized export volume in the past six months was only 500,000 tons.

PT Freeport?s previous six-month export permit expired on January 28. The company has yet to obtain extension of the export permit for another six months from the Ministry of Trade because PT Freeport has yet to obtain recommendation from the Ministry of Energy and Mineral Resources (MEMR).

Bambang said that the ministry has not yet provided the recommendation because PT Freeport has yet to deposit the required US$530 million in an escrow account as proof of its seriousness in developing the planned copper smelter in Gresik, East Java. The extra funds are required because progress of the smelter project has only reached 14 percent, far below the 60 percent requirement to be able to obtain the recommendation from the MEMR. (*)