Minister Of Energy And Mineral Resources Claims PTFI's Potential Resources Will Be Enough For The Next 100 Years

Minister of Energy and Mineral Resources Arifin Tasrif (doc. Ministry of Energy and Mineral Resources).

JAKARTA - Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif, said the potential mineral resources at Grasberg owned by PT Freeport Indonesia (PTFI) could still be mined for another 100 years.

This follows a statement by the Minister of Investment/Head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, who said production from the Grasberg mine would decline after reaching its peak in 2035. This decline would occur if massive proxies were not carried out.

Arifin emphasized that reserves will be sufficient until 2041, but the mine still has abundant reserves potential.

"Grasburg, yes. However, there are more below that. There are four layers or how many. Only 100 years left," Arifin told the media quoted on Saturday, December 9, 2023.

Therefore, he said, the exploration process still takes time and waits for the existing reserves to run out.

This, he said, was also one of the reasons the Government extended the contract to PTFI. Moreover, Freeport will also establish a new refining or smelter industry.

Arifin said that the extension of PT Freeport Indonesia's special mining business license (IUPK) was motivated by the company's commitment to build new smelters in Papua.

"PT Freeport Indonesia will build a new smelter again, then it will be divested again according to the provisions. The condition is that if you want to extend it, the income for the government must increase," said Arifin.

He said Article 196 of Law (UU) Number 3 of 2020 concerning Amendments to Law Number 4 of 2009 concerning Mineral and Coal Mining, allowing mining companies that are still operating, for example Freeport Indonesia, to extend permits if there are still gold and copper reserves.

For this reason, the government is currently harmonizing the rules through the revision of Government Regulation (PP) Number 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities.

"It can extend according to the reserve. It could be 20 years or other amounts according to the adequacy of reserves and other conditions," he said.

It is known, Freeport IUPK will end in 2041. There are several conditions requested by the Government, including Indonesia's share ownership through MIND ID plus 10 percent so that it becomes 61 percent.