Papua Request Shares of Freeport

Rabu, 10 Februari 2016 - 03:02 WIB
Papua Request Shares...
Papua Request Shares of Freeport
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JAYAPURA - Local Government (LG) in Papua asking PT Freeport Indonesia shares as a condition of license renewal operations of mining companies from the United States (US).

Regent Intan Jaya, Natalis Tambuni argued, granting shares to the local administration is a necessary condition before the surgery Freeport extended after the period of their contract runs out in 2021.

"The division of the absolute stock prior to a contract extension," he said at the Parliament Building, Senayan, Jakarta, Tuesday (2/9).

According Natalis, Freeport shares will be used as a source of development funds in Papua and not to local officials cause General Allocation Fund (DAU) is not enough.

"Stocks officials but not to build economic infrastructure areas that are difficult, and full of limitations. The division of the stock was not in the interests of officials. The DAU is not enough, let alone the expected?" he said.

Meanwhile, Mimika Regent Eltinus Omaleng said, in addition to stocks, the demand of the people of Papua is building infrastructure mineral purification plant or smelter do in Papua.

"We've got a couple of records that must be met by the government and Freeport. First, the stock must be owned Papua, Papua instead smelter built in Surabaya, is a mine there?" he said.

Seperate, Freeport Indonesia, managed to obtain a six month export permit extension for copper concentrate on February 9, 2016.

"Freeport has obtained a permit for copper concentrate's export for a period of six months as proposed," Director General of Mineral and Coal, Ministry of Energy and Mineral Resources, Bambang Gatot Ariyono, said here on Tuesday.

The ministry grants extension for copper concentrate export permits for one million tons for the next six months in accordance with the regulations.

"The permission issued today is for one million tons, in accordance with the regulation issued by the Coordinating Minister for Economic Affairs and the Ministry," he said.

According to Bambang, the recommendation was made as the company had responded and was willing to pay an export duty of five per cent.

Meanwhile, the deposit commitment for developing a smelter, amounting to US$ 530 million, is still to be discussed.

"Freeport has responded to the requirement and is willing to meet the five percent export duty condition. Meanwhile, the issue of US$530 million worth of cost will be discussed later," Bambang said.

He said he was optimistic that the company will meet its target of constructing a smelter as the US-based mining company has paid a deposit of US$ 168 million although the obligation to build a smelter has not reached 60 percent.

The recommendation for a copper concentrate export license was issued by the Ministry of Energy and Mineral Resources and was submitted to the Ministry of Commerce as the authority authorized to issue the export license.
(rnz)
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