Government has yet to renew PT Freeport?s export permit

The Ministry of Energy and Mineral Resources has yet to issue the required recommendation letter for gold and copper giant PT Freeport Indonesia to be able to get a renewal of its copper concentrates export permit from the Ministry of Trade. The company?s six-month export permit expired on Monday.

Director General of Mineral and Coal at the ministry, Bambang Gatot Ariyono said on Monday that his office has yet to complete the evaluation process of PT Freeport?s request for an extension of the export permit. ?We have yet to provide (the recommendation letter) and is still evaluating (the request). Report from the technical team has yet to come,? he said.

Late last week, Bambang indicated that the ministry was set to issue the recommendation letter early this week, but it would be likely for only five months, instead of the usual six months, as according to the existing Minister of Energy and Mineral Resources Regulation No 1/2014 export of mineral concentrates will no longer be allowed starting January 12 of next year.

PT Freeport, a subsidiary of US giant Freeport McMoRan Copper & Gold Inc, is seeking for an export quota of 1.42 million tons of copper concentrates, up from 1.03 million tons quota set under the earlier permit, which expired August 8.

PT Freeport Spokesman Riza Pratama was quoted by Bisnis Indonesia as saying that the company expected the government to quickly renew the export permit so as not to affect the company?s production activity.

One of the areas being evaluated by the government in relation to the export permit is progress of PT Freeport?s copper smelter project in Gresik, East Java. Bambang has said that without significance progress in the smelter project, the company will have to pay export tariff of 5 percent. (*)