Gold mine: President Joko “Jokowi” Widodo (right) speaks with Richard Adkerson (left), director of the Freeport-McMoRan Copper and Gold company at the Grassberg mine in Mimika during Jokowi’s visit on Sept. 1, 2022. In 2018, Indonesia acquired Freeport, a giant US company operating in the country. (Photo:AFP/VNA) Jakarta (VNA) - Indonesiawill allow miners Freeport Indonesia and Amman Mineral Nusa Tenggara tocontinue exporting copper concentrate until next 2024, despite a ban startingthis June, to allow for their smelters to be completed.
Earlier, the country’s government is due to ban exports of rawminerals like copper and bauxite from June as part of the efforts to attractinvestment into its metals processing industry and boost the value of its exports.
Minister for Energy and Mineral Resources (ESDM) Arifin Tasrif said delays tocopper smelter construction caused by the pandemic prompted the government totemporarily exempt some firms from the ban.
He said his ministry is pushing so these smelters developmentcan be concluded as soon as possible. The smelters areexpected to be completed in May 2024.
He said Freeport and Amman will therefore be allowed to exportuntil May 2024. The ministry will issue a regulation detailing requirements forthe export leniency for copper.
Freeport Indonesia spokesperson Katri Krisnati said the companyhas not received an official notice regarding the export policy, adding thatthe company appreciates support from the government to help ensure itsoperational and investment continuity.
Theminister said that the government and Freeport have also started discussingextending the company's permit to continue operating the Grasberg mine inPapua. Freeport's current permit will expire in 2041.
Speaking at a briefing earlier, investment minister BahlilLahadalia affirmed that while it will likely allow the extension, thegovernment may want to increase its stake in the company.
Througha state company, Indonesia currently controls 51% of the Indonesian unit of the US mining giant Freeport-McMoRan, and the government wants to expand that byaround 10%, he said.
Freeportis building a 3 billion USD copper smelter in East Java to process 1.7 milliontonnes copper concentrate, while Amman's smelter in West Nusa Tenggara willhave an input capacity of 900,000 tonnes.
Askedabout the bauxite export ban, Arifin suggested there could be no leniency forbauxite, the most common raw material used in the production of aluminium.
𒐪 Thecountry banned exports of nickel in 2020 and has since attracted hugeinvestment into nickel processing, much of it from China./.
