Government to establish a special team to revise Freeport contract

The government would establish a special team to revise contract of work of copper and gold miner PT Freeport in Papua, Sindo Daily reported on Monday.

 

“An inter-ministerial team must be set up to handle audit result,” said Simon Sembiring, Director General of Mineral, Coal and Geothermal in Jakarta recently.

 

A special team led by the Coordinating Minister for Economy will handle negotiation about technical aspects of the contract, Simon said, adding the negotiation was expected to be completed this year.

 

Last week, a team comprising representatives of several ministries has completed its audit on the subsidiary of American mining giant Freeport McMoRan Copper & Gold with several recommendations calling for an improvement in the company's production system, a change in royalty payment system and a tighter control on environmental management.

 

Minister of Energy and Mineral Resources PurnomoYusgiantoro said in Jakarta last week that the government had already told Freeport about the need to revise several points in the contract to comply with the result of the audit.  “In someway, Freeport has agreed (on some recommendations), such as the need to revise the method used for calculating its royalty payment,” he said.

 

However, Purnomo said, the revision would possibly be conducted in stages. (*)