Newmont and Freeport yet to agree on contract renegotiation
Wednesday, September 28 2011 - 03:23 AM WIB
There are six main principles of the contracts to be renegotiated, namely, the size of mining site, divestment, environmental management, royalty, length of contract and the mandatory use of domestic goods and services.
Thamrin however did not disclose which particular points that the two gold and copper miners have yet to agree on.
Meanwhile, spokesperson of PT Freeport Indonesia, Ramdani Sirait, said that Freeport will still honor and comply to the existing Contract of Work.
?We have carried out our operations in Indonesia successfully over the past four decades and hope to continue that achievement,? said Ramdani.
?We are confident that the contract that we hold is fair enough for all stakeholders and provides significant contribution to the government, compared to similar mining companies operating in other countries,? Ramdani said.
Freeport admitted that in line with contract signed in December 1991, it has contributed more than US$ 12 billion to the government.
The government is currently in the process of renegotiating the terms and principles of the Contract of Works and Coal Mining Exploitation Working Arrangements (PKP2B). Around 65 percent of the total mining companies have agreed on the principles of the renegotiation.
Based on the energy ministry?s data, at present there are 42 companies that hold CoWs and 76 companies hold PKP2B contracts. (giok)