Freeport's expansion plan gets govt approval<\/p>\n
JAKARTA (JP): The government has officially approved PT
\nFreeport Indonesia's plan to increase its ore output to 300,000
\ntons per day (tpd) from the current 160,000 tpd, an official at
\nthe Ministry of Mines and Energy said on Wednesday.<\/p>\n
Director General of Mining Rozik B. Soetjipto, said the
\napproval was awarded to the company in a letter issued by his
\noffice dated March 12 this year, but the approval was effective
\ntoday.<\/p>\n
\"PT Freeport Indonesia has agreed upon the four main
\nrequirements set in the principle permit issued by the government
\nin April 1997,\" Rozik said after opening a seminar on the use of
\nlignite.<\/p>\n
The four requirements are an increase in royalties payable to
\nthe government, tailing management, environmental protection and
\nslope stability.<\/p>\n
Under its contract of work, Freeport must deliver to the
\ngovernment between 1.5 percent and 3.5 percent of its copper
\nsales and 1 percent of its gold and silver royalties.<\/p>\n
Freeport, a subsidiary of giant U.S. mining company Freeport
\nMcMoRan Copper & Gold, agreed last month to double royalties from
\nits copper mine and triple royalties from its gold and silver
\nmine, in return for increased ore output at its huge copper and
\ngold mine in Grasberg, Irian Jaya.<\/p>\n
The new royalty scheme will be backdated to Jan. 1, 1999 and
\neffective if ore production at the Grasberg site exceeds 200,000
\ntpd.<\/p>\n
The Grasberg mine is believed to contain one of the world's
\nlargest copper and gold reserves.<\/p>\n
Rozik said Freeport had also agreed on the requirements set by
\nthe government with regard to tailing management and
\nenvironmental protection.<\/p>\n
The government requires Freeport to develop a pilot tailing
\nmanagement project on a 375 hectares of land around the mining
\nsite within five years.<\/p>\n
\"They have to start developing the project now, and it should
\nbe completed in five years, so that people can see it and the
\ndisappointment they have long felt is assuaged,\" Rozik told
\nAntara.<\/p>\n
He promised to keep monitoring the company's activities to
\nensure that it meets the requirement.<\/p>\n
Freeport has consistently faced criticism from
\nenvironmentalists and the local community during its more than
\n25-year operation in the province, for allegedly causing damage
\nto the environment. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/freeports-expansion-plan-gets-govt-approval-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}