PTFI hopes to be allowed to continue export of copper concentrate in 2014
Wednesday, August 14 2013 - 02:24 AM WIB
PT Freeport Indonesia (PTFI) appeals to the government to still be allowed to continue export copper concentrate next year as the required domestic smelting facility has yet to completed.
While PTFI on Tuesday has signed MoUs with PT Indosmelt and PT Indovasi Mineral Indonesia on the supply of copper concentrate to the two companies which plan to build smelters at home, the smelting facility will only be completed in 2017.
The government, as mandated by the 2009 mining law, will ban the export of raw mineral ores starting 2014, requiring miners to process them at home first in a bid to generate greater value added before exporting them.
PTFI has already been supplying 35-40 percent of its copper concentrate to a local smelter PT Smelting Gressik, a joint venture with Japan?s Mitsubishi.
Once the planned two new smelters are ready, PTFI will supply its 2.5-2.6 million tons per year copper concentrate output to the two smelters as well as to the Smelting Gresik, the three of which will have a combined capacity of 600,000 tons per year.
PTFI, however, realized that the planned two new smelters will not yet be ready in 2014.
?Therefore we will continue to talk with the government (to get a dispensation),? Rozik B. Soetjipto, President Director of PT FI, said on Tuesday.
?But, should there is no dispensation from the government, it would be difficult. It means that the capacity of the mine has to be cut,? he said.
Editing by Reiner Simanjuntak