Mining companies operating under the CoW are now required to change their status to a special mining business (IUPK) after the issuance of Government Regulation (PP) No. 1 of 2017.
The regulation, PP No.1/2017 allows IUPK companies to export mineral ores. Mining companies currently having CoW must obtain the IUPK to continue exporting concentrates.
"We do not want it to disturb the companys operations. All this will depend on our talks with the government. It seems it would have many different kinds of impact on us," Freeport Indonesia Spokesman Riza Pratama said at the office of the Directorate General of Mineral and Coal of the Energy and Mineral Resources (ESDM) in Jakarta on Friday (Jan 13).
Representatives of PT Freeport Indonesia, PT Amman Mineral Nusa Tenggara (PT AMNT) and the Director General of Mineral and Coal, Bambang Gatot Ariyono, discussed the new policy. The policy has been signed by President Joko Widodo (Jokowi).
Pratama noted that with the issuance of the new regulation, the company is no longer allowed to export concentrates. Yet, Freeport remains committed to developing a mineral smelter.
"We are committed to developing a smelter but we are still waiting for the contract. Developing a smelter needs a certainty of contract," Pratama explained.
On the same occasion, President Director of PT Amman Mineral Nusa Tenggara Rachmat Makkasau clarified that his company was still studying the new regulation, particularly with regard to the companys obligations towards the government.
Makkasau pointed out that his companys operations were still running. "Our operations are running at normal pace. Our focus is to ensure that the operations keep running well," he added. (WDY)
