Pindad to supply explosive materials for Freeport

State-owned explosive materials and equipment maker PT Pindad plans to supply explosive materials and heavy equipment for gold and copper mining giant PT Freeport Indonesia, Kontan reported on Monday.

The paper quoted Pindad President Director Silmy Karim as saying that an MoU with PT Freeport is expected to be signed soon, in the hope that the supply contract can be effective end of this year, or early next year.

He said that PT Freeport requires heavy equipment with capacity of 40-ton.

The planned contract with Pindad is seen as part of PT Freeport?s, a local subsidiary of US-based Freeport McMoRan Copper & Gold, to increase the use of locally-made materials in its mining operation in Grasberg, Papua. In the ongoing amendment of its mining contract, Freeport has agreed to the government?s proposal to increase the so-called local content.

Kontan said that PT Freeport is also planning to cooperate with state-owned firms PT Dahana and PT Bukit Asam Tbk. (*)