Mining activities at PT Freeport mine cut down drastically

Courtesy of Freeport

Mining activities at gold and copper giant PT Freeport Indonesia in Papua Province have dropped by up to 80 percent as the company has suspended production of copper concentrates since February 10 of this year amid lingering dispute with the government.

Kontan quoted Fredrik Magai, Spokesman for the Freeport Care Solidarity Movement, as saying Monday that activities are now merely focused on maintenance work of the underground mine.

Fredrik said that copper concentrates at three stockpile facilities have now mounted to 135,000 tons as the company has been unable to resume export. As activities have been drastically slashed down, workers have been suspended and laid off, he said, but did now provide figures.

The paper said that according to data from the Mimika Regency office of the Manpower and Transmigration Ministry, the number of laid off and suspended workers totaled 1,341. The laid off workers are those of PT Freeport contractors. While suspended workers are those directly employed by PT Freeport.

According to a 2014 government regulation, export of mineral concentrates including copper concentrates produced by firms such as PT Freeport, a local subsidiary of US-based Freeport McMoRan Inc, were no longer allowed for export starting January 12 of this year. But the current government introduced new Government Regulation No 1/2017 allowing for miners to continue export of mineral concentrates for five years under certain requirements including conversion of their mining permit status from mining contract of work (COW) into special mining business license (or IUPK). While PT Freeport agrees to convert the COW into IUPK, the company demands legal and fiscal terms in the IUPK to be the same as those set under the COW regime, a request the government turns down by the government. PT Freeport has threatened to go to the international arbitration if no solution is reached within 120 days. (*)