Tuesday, May 23, 2017

Indonesia government gives signal not to extend Freeport’s export permit

JAKARTA – Indonesia government has sent a signal not to extend U.S Freeport-McMoRan Inc.’s export license after its unit PT Freeport Indonesia (PTFI) does not fulfill the obligation to put funds US$530 million as a commitment to build a smelter in the country. The miner’s existing permit was set to expire Jan. 28. Bambang Gatot Ariyono, director general of minerals and coal at the Energy & Mineral Resources Ministry, said the government still waiting for a detailed response from Freeport on their proposal. Freeport had asked for a license to ship 1 million tons over the next six months.  Freeport, which mined $2 billion of copper and $1.4 billion of gold in 2014 from Grasberg, also wants to extend its contract to operate in Indonesia. That expires in 2021, and the company has agreed to sell shares as part of the negotiation.