Minister warns Freeport export permit may be suspended

The government has warned gold and copper giant PT Freeport Indonesia that its export permit may be suspended if the company fails to soon deliver progress over its plan in developing the required domestic smelter.

Minister of Energy and Mineral Resources Sudirman Said told reporters Tuesday that the ministry would make a review of the export permit and Freeport?s smelter project on January 25. He said that he had been disappointed with Freeport as the company has not made any progress with the smelter project including in deciding location for the planned facility. ?The smelter progress is still far, I?m not happy, I?m disappointed,? Sudirman said.

The government issued permit for PT Freeport to export copper concentrates on July 25 of last year after the company signed an MoU on the amendment of its mining contract of works and expressing commitment to build the required domestic smelter. Freeport said that it would build the copper cathode smelter in Gresik, East Java.

The export permit will be reviewed every six months. Freeport resumed export in August after having been suspended since January 12 of 2014 after the government introduced an export ban on mineral ores and slapped a hefty export tax on concentrates.

The tax was eventually reduced significantly, following protests from the miners, but the government introduced a tighter export procedure including requiring miners to get export recommendation letter and export permit, respectively from the Ministry of Energy and Mineral Resources, and Ministry of Trade. (*)