Government Opens Way to Extend Freeport Operations to 2061 News – 2 hours ago

Jakarta, CNBC Indonesia – Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif has opened his voice regarding the certainty of extending PT Freeport Indonesia’s (PTFI) Special Mining Business License (IUPK). Especially after the contract ends in 2041.

According to Arifin, the contract extension for PTFI for the next 20 years until 2061 takes many things into consideration. Firstly, there is potential for minerals that can be mined, secondly, considering additional benefits for the Indonesian government.

Therefore, currently the party is carrying out the process of revising the Government Regulations (PP) which regulate the implementation of business activities in the mineral and coal sector.

“We are still in the process, there is a (revision) of the PP. It is still being harmonized,” said Arifin when met at the Ministry of Energy and Mineral Resources Building, Friday (1/12/2023).

Arifin assessed that as long as it provides great benefits for the country, the government will process the approval for the extension proposed by PTFI. Even though in the previous regulations the IUPK extension could only be done no sooner than 5 years or no later than 1 year before the business permit expired.

“Yes, this is the case for Freeport, later we can refer it to others if it can provide additional benefits for the country, then later we will build additional smelters, then the government’s portion will be bigger, and downstream obligations will arise,” he said.

Previously, VP Corporate Communications PTFI, Katri Krisnawati said that to obtain permission to extend PTFI’s IUPK operations in Papua, PTFI will build a raw mineral refining and processing facility (smelter) in Fak-Fak, West Papua and increase the government’s stake by 10%.

“The construction of a smelter in Papua and the addition of 10% government shares are part of PTFI’s IUPK extension,” said Katri to CNBC Indonesia, quoted Friday (17/11/2023).

As is known, during his visit to the United States (US), President Jokowi also met with Freeport McMoran CEO Richard Adkerson. During the meeting, discussions were discussed regarding increasing Freeport’s shares in Indonesia, as well as extending mining permits.

“I am happy to hear that discussions about adding 10% of Freeport’s shares in Indonesia and extending the mining permit for 20 years have reached the final stage,” said Jokowi to Richard Adkerson, in a statement, Tuesday (14/11/2023).

President Jokowi also hopes that this can be resolved by the end of November this year. “Completed at the end of this month,” he concluded.

[Gambas:Video CNBC]

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