PT Freeport Indonesia (PTFI) currently holds a special mining business license (IUPK) until 2061, although it is scheduled to expire in 2041. To extend PTFI's license, the company will construct a smelter in Fak-Fak, West Papua, and increase the government's ownership stake by 10%.
On Friday (17/11/2023), Minister of Energy and Mineral Resources (MEMR) Arifin Tasrif affirmed that the government is set to renew the mining company's IUPK, with Indonesia holding the majority of shares.
Speaking to the press on Friday (17/11/2023), Minister Arifin Tasrif disclosed that one of the topics discussed after President Joko Widodo's visit to the United States was the extension of Freeport Indonesia's mining contract in Papua, scheduled to conclude in 2041.
Minister Arifin stated that the IUPK for PTFI could be extended until 2061, because the calculated mineral resource reserves still exist and can continue to be utilized.
Mineral resource reserves that can still be utilized by PTFI are underground or underground mining. For this reason, the current focus of mineral resource utilization is focused on underground mining.
Meanwhile, PTFI's VP Corporate Communication, Katri Krisnawati, mentioned that to obtain the extension of the IUPK operation in Papua, PTFI will build a mineral refining and processing facility (smelter) in Fak-Fak, West Papua. In addition, it will add a 10% government stake.
During a recent visit to the United States, President Jokowi also met with Freeport McMoran CEO Ricard Adkerson, besides President Joe Biden. The meeting discussed the increase in Freeport's shares in Indonesia, as well as the extension of mining licenses.
"I am pleased to hear that discussions on a 10% increase in Freeport's shares in Indonesia and a 20-year extension of mining permits have reached the final stage," Jokowi said to Richard Adkerson in a statement on Tuesday (14/11/2023).
President Jokowi also expects that the matter can be finalized by the end of November this year. "Complete at the end of this month."
Image source: SINDOnews