YOGYAKARTA - PT Freeport Indonesia (PTF) has been allowed to return to export copper concentrate starting July 26, 2023. Previously, the export activity had to be stopped because of permits that had not been issued. So what is a copper concentrate?
Tony Wenas, President Director of Freeport Indonesia, revealed that the export activity of copper concentrate had been carried out 46 days since the previous export permit ended on June 10, 2023. PTFI was allowed to run copper exports after June this year until mid-2024.
"Yes, it's allowed to export. It's around, if I'm not mistaken July 26. So even though it's 44 days late (from Jokowi's blessing)," said Tony Wenas, on the sidelines of attending the ASEAN Investment Forum in Jakarta, last Sunday (3/9).
What is a copper concentrate and what are the developments like in Indonesia?
The copper concentrate comes from copper ore rocks containing identified copper, gold, and silver. The copper ore processing process is carried out to separate parts that do not contain metals, which are called tailings, and then discarded. Meanwhile, a concentrate containing metal is taken. Currently, about 60% of the concentrate is exported.
The government of President Joko Widodo (Jokowi) has stopped the export of a number of raw mineral commodities since June 10, 2023. However, PTFI has received relaxation to export concentrate until May 2024. This step was decided in line with the development of the second copper smelter of PTFI in Gresik, East Java.
Previously, the postponement of export permits had caused PTFI's concentrate storage warehouse in Amamapare, Mimika, Papua, to exceed its capacity. Several concentrates were even forced to be placed outside the warehouse. The postponement of the permit also had an impact on the company's sales performance.
According to the financial reports and operations of the second quarter/2023 Freeport-McMoRan Inc., the copper production produced by PTFI during the first semester of 2023 reached 735 million pounds, a decrease of 6.73 percent compared to the same period the previous year which reached 788 million pounds.
Company copper sales also experienced a significant decline. During the six months of 2023, PTFI's copper sales reached 584 million pounds, a decrease of 25.98 percent compared to sales in the same period the previous year, which reached 789 million pounds.
Previously, Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif stated that relief was given because Freeport's new smelter in Manyar, JIIPE Gresik Special Economic Zone (SEZ), East Java, had not yet been completed.
On the other hand, Arifin emphasized that this relief will only be given with several requirements, including a strong commitment to accelerate the completion of the smelter construction.
"We are considering the obstacles faced by the construction (smelter). During Covid-19, he was a Japanese contractor. Japan alone has a lockdown for how many years. Indeed, the engineering work is a bit difficult to progress. If engineering is not progress, the purchase of procurement material is also not progress," said Arifin at the Presidential Palace, Jakarta, last April.
Not only Freeport, Arifin also revealed that PT Amman Mineral Nusa Tenggara will also be allowed to continue exporting copper concentrate after next June. Arifin stated his intention to immediately examine the development of the smelter construction of the two companies.
That is the review of what the copper concentrate is and the development of its export license in Indonesia. PT Freeport Indonesia can be happy because it has received relaxation to carry out export copper concentrate.
Stay up to date with the latest domestic and other overseas news on VOI. You present the latest and most updated nationally and internationally.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
