Indonesia Allows Exports From Freeport Mine in Stop-Gap Deal – by Yoga Rusmana and Eko Listiyorini (Bloomberg News – April 4, 2017)

https://www.bloomberg.com/

Indonesia has issued a temporary mining license to Freeport-McMoRan Inc.’s local unit that will allow the company to resume concentrate exports from the world’s second-largest copper mine after a gap of about 12 weeks.

The permit for Grasberg is valid for eight months from the time that the producer was first offered a special mining license or IUPK in February, Teguh Pamudji, secretary-general at Indonesia’s Energy and Mineral Resources Ministry, told reporters in Jakarta on Tuesday. The government will continue talks with Freeport on a long-term financial stability pact, he said.

A Phoenix-based Freeport spokesman, Eric Kinneberg, reiterated Tuesday that talks to resume exports are continuing. “We are progressing constructive discussions with the government that would enable PT-FI to resume concentrate exports while retaining our contract until a mutually satisfactory replacement agreement is completed,” he said in an email, referring to the Indonesian unit by its initials.

The mining company expects to resume exports soon and will continue discussions with the government on other issues, PT-FI spokesman Riza Pratama said in a text message before the announcement.

The producer will be able to switch back to its Contract of Work from the temporary mining license if a long-term deal is not reached by Oct. 10, but its right to export would be rescinded, Pamudji said.

For the rest of this article, click here: https://www.bloomberg.com/news/articles/2017-04-04/indonesia-gives-freeport-temporary-license-to-resume-exports

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