12 October 2022
The Minister of Investment/Head of the Coordinating Board of Capital Investment, Bahlil Lahadalia, affirmed that PT Freeport Indonesia’s contract extension, which was issued ahead of time and with an expiry date in 2041 must be in accordance with the mechanisms and in the interest of the nation.
While acknowledging that the extension of the contract has yet to be addressed, Bahlil affirmed that in future the process must be in line with regulations and the national interest. “We will be reviewing everything of importance by considering mechanisms and regulations and the national interest,” he said when approached at the JCC Senayan, on Wednesday (10/12).
Lately information was doing the rounds that the extension of Freeport Indonesia’s contract was granted prematurely considering the mineral reserves at the Grasberg mine had still economic value until after 2041. At the time Minister of Energy and Mineral Resources (ESDM), Arifin Tasrif, said that after 2041 mineral reserves at Freeport Indonesia had still economic value. “The area’s economic value was still high and this was quite needed for energy transition,” he said.
As established by PTFI 2020 annual report underground production in the mineral district of the Grasberg in Indonesia is still increasing. After the ramp-up it is anticipated there is a likelihood Freeport will produce an average annual production for several years ahead of 1.55 billion pounds of copper and 1.6 million ounces of gold.
Arifin is questioning in case PTFI’s contract will not be renewed which company would be capable to continue its operations there. With the abundance of reserves still there while no one else wants to enter after that,” he said.
For information, after the transfer of majority shares (divestment share) of Freeport Indonesia to INALUM ws completed in 2018, a Special Business Mining License forvProduction Operations (IUPK-OP) was issued to replace PTFI’s Working Contract (KK) which had been running since 1967 and renewed in 1991 with a validity until 2021.
With the issuance of the IUPK, PTFI will obtain legal certainty and business assurance by obtaining an operational extension of 2 x 10 years until 2041 including fiscal and regularitory guarantees.
Kami menghimbau para pencari kerja untuk berhati-hati dan mewaspadai beragam modus penipuan perekrutan yang mengatasnamakan PT Freeport Indonesia. Dalam setiap proses rekrutmen dan penerimaan karyawan, PT Freeport Indonesia maupun konsultan rekruitmennya tidak memungut biaya apapun.
Untuk melihat lowongan, silakan akses melalui link berikut: ptfi e-recruitment
Untuk melihat informasi magang, silakan akses melalui link berikut: Internship Program
