Indonesia: Freeport gets another monthly permit extension

• The government has issued another temporary permit extension for gold and copper miner PT Freeport Indonesia (PTFI) as the divestment process of shares from Freeport-McMoran (FCX) to state-owned mining holding company PT Indonesia Asahan Aluminium (Inalum) is still incomplete.
• The temporary special mining permit (IUPK) is being issued by the government as the previous temporary permit expired on 30 Sep 18. PTFI has already had a monthly temporary IUPK since Feb 17. The issuance of the permanent IUPK is pending the completion of the divestment process.
• Energy and Mineral Resources Ministry mineral and coal director general Bambang Gatot Ariyono said in Jakarta on 1 Oct 18 that the temporary IUPK would take effect on 1 Oct 18 and would end in late-Oct 18.
• Inalum signed last week agreements with United States-based mining giant FCX, a parent company of PTFI, on the purchase of a majority stake in PTFI, which operates the gold and copper mine in Papua.
• To conclude the deal, however, Inalum, which represents the government in the talks, needs to settle the payment of USD3.85bn to FCX and the Rio Tinto Group within six months.
• Freeport is also seeking a contract extension to operate the mine for 20 years after its current contract of work (CoW) expires in 2021 till 2041.

External Link: http://www.thejakartapost.com/news/2018/10/01/freeport-gets-another-monthly-permit-extension.html