MEMR issues export recommendation for Freeport, four other firms

The Ministry of Energy and Mineral Resources (MEMR) is set to finally issue export recommendation letter for copper giants PT Freeport Indonesia and PT Newmont Nusa Tenggara (NNT), and three other mineral concentrate producers, reports said on Friday quoting the Director General of Coal and Mineral at the ministry, R. Sukhyar.

The export recommendation letter is a necessary requirement for the companies to be able to obtain export approval from the Ministry of Trade. Freeport Indonesia and NNT have suspended export of copper concentrates since January of this year following the implementation of the mineral ore export ban by the government and tougher export requirements for concentrates.

According to the reports, PT Freeport is given an export quota of 1.5 million tons of copper concentrates per year, out of the projected annual output of 2.5 million tons as the remainder is allocated for domestic smelter. Meanwhile, NNT?s export quota is estimated at 600,000 tons, or about 75 percent of projected output, Bisnis Indonesia daily said.

It remains to be seen whether Freeport and NNT will finally resume export as they have also been protesting the punitive export duties of 25 percent. The government has recently said that it would consider lowering the export duty for miners which shown progress in developing planned domestic smelters.

Meanwhile, other mineral concentrate producers given the export recommendation letter by the MEMR included PT Sebuku Iron Lateritic Ore, PT Daya Swasta, and PT Lumbung Mineral Sentosa. (*)