Energy Ministry Gives Export Recommendation to 3 Mining Companies

TEMPO.CO, Jakarta - Director General of Mineral and Coal of the Ministry of Energy and Mineral Resources, R. Sikhyar, said that the ministry has given export recommendation to three mineral mining companies.

Those three companies are PT Freeport Indonesia, PT Newmont Nusa Tenggara and PT Sebuku Iron Lateritic Ores. "We've recommended the three companies to the Ministry of Trade," Sikhyar said to Tempo, Friday, March 28, 2014.

Sukhyar added that those companies are recommended as registered exporters because they have shown their commitment to process and purify minerals at home.

He said that the commitment is proven among others having a memorandum of understanding to build smelters at home and expressing willingness to post bail to build smelters through the government bank account.

Sukhyar cited PT Freeport as an example. He said that the company has already signed a memorandum of understanding with PT Aneka Tambang (Persero) Tbk to build a smelter.

After the signing, Sukhyar said that the two companies are still waiting for the assessment of the amount of capital expenditure needed. "They still want to push down capital expenditure," he said.

Sukhyar further said that based on the feasibility study conducted by PT Freeport and PT Newmont, the construction of smelter will require an investment worth US$1.5 to 1.8 billion.

He also said that the amount of the capital expenditure will become the basis for the calculation of bail to be posted to the government.

BERNADETTE CHRISTINA