Freeport to apply for another renewal of export permit

Gold and copper giant PT Freeport Indonesia will apply for another renewal of copper concentrates export permit in December of this year as the existing permit will expire on January 11 of next year.

This was said by PT Freeport Spokesman RizaPratama as quoted by Bisnis Indonesia on Monday, but did not provide further details.

The Ministry of Energy and Mineral Resources issued on August 9 a letter of recommendation for PT Freeport, a local subsidiary of US-based Freeport McMoRan Copper & Gold Inc, for a renewal of export permit, providing the company with export quota of 1.4 million tons of copper concentrates, up from 1.03 million tons under the previous permit. The Ministry of Trade then issued the export permit on August 10 that is valid until January 11 of 2017.

According to the current Minister of Energy and Mineral Resources Regulation No 1/2014, export of mineral concentrates including copper concentrates will no longer be allowed starting January 12, 2017. The government has been urging miners to build domestic smelters in a bid to allow the country to enjoy greater value from its mineral resources.

PT Freeport plans to build a copper smelter in Gresik, East Java, but according to the Ministry of Energy and Mineral Resources, progress has so far reached only 14 percent, raising doubts that it could be completed by early next year.

Some are hoping that the planned export ban policy would be revised through the ongoing amendment of the 2009 Mining Law. (*)