Maroef resigns as PT Freeport president
Monday, January 18 2016 - 02:54 PM WIB
President Director of gold and copper giant PT Freeport Indonesia Maroef Sjamsoedin has tendered resignation letter despite an offer from the parent company, US-based Freeport McMoRan Copper & Gold, for an extension of his one-year employment contract.
?With regard to the expiration of my employment contract for a year as an employee in the entrusted position of President Director of PT Freeport Indonesia (PTFI), and the extension offering from the leaders of Freeport McMoran, I have sent my resignation letter as the President Director of PTFI,? Maroef said in the letter, a copy of which was obtained by Petromindo.com late Monday.
PT Freeport Spokesman Riza Pratama confirmed Maroef?s resignation, but declined to provide further details.
Maroef?s resignation comes following the resignation late last year of Freeport McMoRan co-founder and executive chairman James R. Moffett, and at a time when the company is facing a number of challenges in Indonesia.
PT Freeport is seeking for an extension of its current copper export permit, which will expire January 28. The government has set a number of requirements that must be met by the government to obtain the export permit extension including significant progress over the company?s planned US$2.3 billion copper smelter in Gresik, East Java.
PT Freeport has also been under pressure to divest a 10.64 percent shares to Indonesian investors this year to meet a mandatory divestment program. The company last week formally made the share offer to the government, valuing the 10.64 percent shares at US$1.7 billion, which is deemed by some as too expensive.
PT Freeport is also struggling to seek an early extension of its mining contract of work, which will expire in December 2021, as the company plans to invest around US$17.5 billion to develop underground mines in Papua. Existing regulation only allows the company to apply for contract extension two years before its expiry. There has been pressure for the government not to approve PT Freeport?s request.
Editing by Reiner Simanjuntak