Jakarta, VIVA \u2013 Energy and Mineral Resources Minister Bahlil\nLahadalia has stated that the extension of Freeport-McMoRan\u2019s (FCX)\nSpecial Mining Business Licence (IUPK) in Papua is an effort to explore\nnew reserves, whilst also serving as a strategy to increase state\nrevenue and maintain production sustainability.<\/p>\n
Speaking at an online press conference monitored from Jakarta on\nFriday, Bahlil said this was also in line with Freeport\u2019s projected peak\nproduction, expected to occur in 2035.<\/p>\n
\u201cAs it happens, Freeport\u2019s peak production will be around 2035. We\nknow that Freeport\u2019s concentrate currently produces, in a year before\nthe incident occurred, up to 3.2 million tonnes of copper concentrate\nore, yielding approximately more than 900,000 tonnes of copper and\nroughly 50 to 60 tonnes of gold,\u201d Bahlil said.<\/p>\n
\u201cBecause 2035 is the peak of production, we are of the view that it\nis important for us to seek solutions to ensure the continued existence\nand sustainability of operations in Timika, Papua,\u201d he added.<\/p>\n
The minister further noted that the Indonesian government, MIND ID,\nand Freeport have been engaged in intensive discussions regarding the\nlicence extension scheme.<\/p>\n
Indonesia\u2019s shareholding composition, he continued, currently stands\nat 51 per cent. Through the licence extension, the government would\nobtain an additional 12 per cent share divestment at no acquisition\ncost.<\/p>\n
Under this scheme, Indonesia\u2019s ownership is expected to reach 63 per\ncent by 2041. A portion of the additional 12 per cent shareholding would\nalso be allocated to the Papua regional government as the producing\nregion.<\/p>\n
Furthermore, Bahlil expressed hope that the licence extension would\nmaintain business sustainability, create employment opportunities in\nPapua, and drive increases in regional revenue and non-tax state revenue\n(PNBP).<\/p>\n
\u201cIn the extension to 2041, state revenue is expected to be\nsignificantly higher than current levels, including royalties and other\ntaxes, particularly on gold,\u201d Bahlil said.<\/p>\n
Previously, Investment and Downstream Industries Minister and Head of\nthe Investment Coordinating Board (BKPM) Rosan Roeslani announced that\nthe Indonesian government and Freeport-McMoRan (FCX), the US-based\nmining company, had signed a Memorandum of Understanding (MoU) regarding\nthe extension of the Special Mining Business Licence (IUPK) at Grasberg,\nCentral Papua.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bahlil-freeport-licence-extension-aimed-at-exploring-new-reserves-1771685030", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }