Applying For An Extension Of The Concecentrat Export Permit, Freeport Boss Gives An Explanation

Mining illustration (Photo: dock. Antara)

JAKARTA - PT Freeport Indonesia (PTFI) is known to have again applied for permission to extend the relaxation of its copper concentrate export permit after May 2024 to President Joko Widodo. In fact, based on the permit issued, Freeport is only allowed to export until May 2024 or until the Gresik smelter project is completed.

President Director of PT Freeport Indonesia (PTFI), Tony Wenas, said that the application process was still ongoing and his party had firmly applied for an extension of the relaxation permit.

"Yes, it's still a process, hopefully it can be understood," said Tony, quoted Tuesday, October 24.

Tony explained that the reason PTFI applied for a relaxation permit was that the Gresik refining industry needed time to reach 100 percent production capacity so PTFI still had to export copper concentrate. To reach full capacity, the smelter will need at least until the end of 2024.

"Our smelter started operating in May. But it will take time to reach 100 percent production. Well, that will only reach 100 production in December 2024, in stages. So, it has been discussed from before with the government that the hope is that we can continue to export "Some of that is until the end of 2024, until December," explained Tony.

Based on the mandate of Law No. 3 of 2020 concerning Mineral and Coal Mining (Minerba), the government will begin to stop exports of raw mineral commodities including copper concentrate after June 10 2023, but Freeport is permitted to export until the smelter it is building begins market operations in 2024.

On the other hand, the Ministry of Energy and Mineral Resources also has a formula for imposing sanctions for delays in refining facilities referring to Minister of Energy and Mineral Resources Decree Number 89 of 2023 concerning Guidelines for Imposing Administrative Fines for Delays in Construction of Metal Mineral Refining Facilities in the Country.

The first sanction that will be imposed is the placement of a serious guarantee of 5 percent of total sales in the period 16 October 2019 to 11 January 2022 in the form of a joint account (Escrow account). Responding to this, Tony emphasized that his party had spent quite a lot of money on the construction of the smelter.

"The guarantee of sincerity is funny. This guarantee of sincerity is usually given or imposed on those who have not yet built, so that you are really building. We have already spent 2.6 billion dollars when we say we are using a guarantee, 2.6 billion dollars has already been spent. "It's impossible to go back," concluded Tony.