Govt could extend Freeport mine?s closure

The government could extend the partial closure of PT Freeport Indonesia?s gold and copper mine in Mimika, Papua, if the situation not improves at the mine, Kompas newspaper reported quoting a government official on Thursday.

But the Dow Jones Newswires cited a different reason for possible extension of Freeport mine?s closure on Wednesday. It said in a report quoting the same government official that if the ongoing investigation finds out that the landslide was caused by overproduction, the government could extend the mine?s closure.

?During the two-week closure, we will decide whether it can reopen or not. If the things could not move, the closure (of mine) could be for a long time, director general for geology and mineral resources at the ministry of energy and mineral resources Wimpy S. Tjetjep told reporters in Jakarta on Wednesday.

Wimpy also said that overproduction would violate the production permit the government has given to the company, and the government will impose a penalty if the company is found to have violated the permit.

Further, he mentioned that if production at the Freeport?s mine is stopped for only two or three weeks, the government?s royalty from the company will not be affected.

Last week, Freeport -- the local unit of New Orleans-based Freeport-McMoran Copper and Gold Inc. -- suspended part of its operations at an open-pit Grasberg gold and copper mine in Mimika after a landslide killed two workers and injured five, while six were missing.

The government has sent an investigation team comprising of mine inspectors and geotechnical experts to the site to investigate the causes of the accident and assess how to prevent further landslides. (*)