A PT Freeport mine in Timika, Papua.
JAKARTA, GRES.NEWS – The House of Representatives Commission VII will summon the Minister of Energy and Mineral Resources, Ignasius Jonan, to obtain more detailed results of the most recent meeting between the government and PT. Freeport Indonesia.
Both parties have agreed on four crucial points: PT. Freeport Indonesia will replace its Work of Contract (KK) permit with a Special Mining Business Permit (IUPK), which would allow the company to operate up to 2041.
The government will provide fiscal and legal certainty, PT Freeport Indonesia will build a smelter in Indonesia in the next five years and Freeport McMoRan will divest 51 percent of its shares in PT. Freeport Indonesia to the government of Indonesia.
"Therefore, the House of Representatives Commission VII will ask the Minister of Energy and Mineral Resources to explain the negotiation results in detail and comprehensively," Gus Irawan Pasaribu, Chairman, House of Representatives Commission VII, Monday (9/10).
Addressing to the plan, minister Ignasius said the government and PT. Freeport Indonesia reached the deal on 27 August 2017. "The government has agreed to two ten-year extensions, in accordance the Law on Mineral and Coal," he said, quoted by dpr.go.id.
He explained that the first extension will start from 2021 to 2031 and the second ten-year extension will be granted after the company meets the three requirements motioned above. "No changes occurred in the more recent meeting," he said. (rm)