Minister Of Energy And Mineral Resources Explains Reasons For Extending IUPK Freeport Indonesia Until 2061

Minister of Energy and Mineral Resources Arifin Tasrif (Photo: Antara)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif spoke bluntly regarding the government's reason for approving the extension of PT Freeport Indonesia's Special Mining Business License (PTFI) until 2061.

Just so you know, the government is currently revising Government Regulation (PP) No. 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities.

Arifin emphasized that the reason for the government to extend the permit was to maintain the supply of copper ore for the needs of refining or smelter facilities.

"Yes (extended) 2061. Because of this, because he built the smelter, the capacity is large, new and existing. So it does require certainty in the supply of the ore," said Arifin to the media crew when met at the Musrenbangnas event, JCC Jakarta, Monday 7 May.

He further explained that if PTFI only relied on the current supply of ore, there would be a possibility of decreased production to losses for PTFI.

"So indeed with that, he will allocate a budget to explore in his work area. So that we can ensure that later 2061 smelters can be guaranteed that supply," said Arifin.

Previously, the Minister of Investment/Head of BKPM Bahlil Lahadalia revealed that the process of extending the special mining business permit (IUPK) of PT Freeport Indonesia (PTFI) was almost final.

"Oh, it's final, it's almost final, just waiting for the PP," said Bahlil at the Ministry of Investment Office, Jakarta, Monday, April 29.

Bahlil revealed that Freeport's IUPK contract extension has several aspects of consideration. He said, currently Indonesia owns 51 percent of Freeport's shares, while the peak of Freeport's production will occur in 2035.

"Now the peak of Freeport production is 2035, because now we are running an underground," said Bahlil.

If after 2035 exploration activities are not carried out, continued Bahlil, then production can run out. On the other hand, exploration in underground mining areas takes 10 to 15 years.