Freeport Gets Export Permit For Copper Concentrat Until May 2024, Here Are The Considerations

Mining illustration (Photo: dock. Antara)

JAKARTA - After previously being reported that the Government will stop exporting the Freeport copper concentrate in June 2023, now PT Freeport Indonesia has obtained an export permit until May 2024.

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif emphasized that PTFI obtained a copper concentrate export license with a note.

"Extend the export permit until May 2024 with a note," he told the media when met at the Ministry of Energy and Mineral Resources Building, Friday, April 28.

Regarding this approval, continued Arifin, his party is also preparing a legal umbrella through a Ministerial Decree.

He added that if the export permit was granted, taking into account several things such as the impact of the pandemic so that the smelter construction was hampered. Moreover, Freeport uses a Japanese contractor who imposes a lockdown during the pandemic.

"Regularly, exports are not allowed starting in June 2023. But on the other hand, we also consider several things, including the impact of the pandemic," he continued.

In addition to the impact of the pandemic, this permit is granted by considering workers who will be affected if export termination is carried out.

"The second is also regarding the problem of productivity there related to the workforce, indeed we are now accelerating so that the construction of this smelter must be resolved immediately," concluded Arifin.

Previously, PT Freeport Indonesia's VP of Corporate Communication Katri Krisnati said, broadly speaking, the ban on copper exports could result in the suspension of PTFI's operational activities, which significantly had an impact on all operational activities and the sale of mining products.

"If the suspension of PTFI mining operations occurs, the potential loss to state revenues through taxes, dividends and PNBP will reach Rp57 trillion this year," he told VOI quoted on Thursday, April 13.

In addition, continued Katri, the regions will lose around Rp8.5 trillion per year in revenue for the Provincial, Mimika Regency and surrounding regencies in the province.