Freeport expects deal with Indonesian government to be mutually beneficial

Jakarta (ANTARA News) – Copper and gold miner PT Freeport Indonesia expects the ongoing deal with the Indonesian government to mutually benefit both parties, the companys Executive Vice President Tony Wenas stated at the Ministry of Energy, here, Wednesday.

“Although we should consider the lobbying process, the company hoped the negotiation would immediately result in a final agreement,” Wenas noted in Jakarta.

Wenas remarked that the two parties had yet to reach a decision since four topics were still under discussion.

On a separate occasion, the Ministrys Deputy of Mining, Strategic Industry, and Media Fajar Harry Sampurno confirmed that the two parties still continue to negotiate the contract.

Both the ministry and the company have yet to agree on the taxation systems, Sampurno reiterated while adding that Freeport has called for a “nail down” mechanism, while the government has sought to apply the “prevailing” scheme.

In order to continue exporting concentrates, Sampurno said the company has to pay tax based on the “prevailing” scheme, as Freeports operational status had changed from Work Contract to the Special Mining Permit.

On the other hand, the company has demanded the “nail down” taxation scheme for the Work Contract. Sampurno explained that if Freeport continued to hold on to the earlier contract, the Mineral and Energy law will ban the company from exporting concentrates.

Meanwhile, speaking in connection with the operational contract that ends in 2041, Sampurno noted that the government will grant two renewals, each of a 10-year term, in accordance with the law.

“However, the company is required to build a smelter in the next five years (in 2022),” he pointed out.

Earlier, in April, the Trade Ministry had granted a permit that allowed the company to export its copper concentrates until February 16, 2018.

Following the permit, the company will now continue to export its 1.13 million tons of concentrate for a year.

Source: Antara News

Freeport expects deal with Indonesian government to be mutually beneficial

Jakarta (ANTARA News) – Copper and gold miner PT Freeport Indonesia expects the ongoing deal with the Indonesian government to mutually benefit both parties, the companys Executive Vice President Tony Wenas stated at the Ministry of Energy, here, Wednesday.

“Although we should consider the lobbying process, the company hoped the negotiation would immediately result in a final agreement,” Wenas noted in Jakarta.

Wenas remarked that the two parties had yet to reach a decision since four topics were still under discussion.

On a separate occasion, the Ministrys Deputy of Mining, Strategic Industry, and Media Fajar Harry Sampurno confirmed that the two parties still continue to negotiate the contract.

Both the ministry and the company have yet to agree on the taxation systems, Sampurno reiterated while adding that Freeport has called for a “nail down” mechanism, while the government has sought to apply the “prevailing” scheme.

In order to continue exporting concentrates, Sampurno said the company has to pay tax based on the “prevailing” scheme, as Freeports operational status had changed from Work Contract to the Special Mining Permit.

On the other hand, the company has demanded the “nail down” taxation scheme for the Work Contract. Sampurno explained that if Freeport continued to hold on to the earlier contract, the Mineral and Energy law will ban the company from exporting concentrates.

Meanwhile, speaking in connection with the operational contract that ends in 2041, Sampurno noted that the government will grant two renewals, each of a 10-year term, in accordance with the law.

“However, the company is required to build a smelter in the next five years (in 2022),” he pointed out.

Earlier, in April, the Trade Ministry had granted a permit that allowed the company to export its copper concentrates until February 16, 2018.

Following the permit, the company will now continue to export its 1.13 million tons of concentrate for a year.

Source: Antara News