Freeport Agrees on Contract Amendment
8 July 2014 14:00 WIB
TEMPO.CO, Jakarta - Coordinating Minister for the Economy, Chairul Tanjung, said the contract renegotiation with Freeport Indonesia has been completed. After agreeing to six renegotiation points proposed by the government, Freeport will be allowed to export its mineral ores again.
The six points proposed are the construction of smelters, the size of land mines, changing the extension contract into a mining license, increased state royalties, divestments, and the utilization of goods and services from domestic mines.
Chairul said all points listed in the Law on Mineral and Coal and their derivatives rules have been approved by Freeport.
Once there is a decision from the president, Trade Minister Muhammad Lutfi said he will issue a mineral export permit for Freeport. Whithout saying when, Lutfi said Freeport will then be able to sell their gold and copper concentrates once the Finance Minister regulation on export duty is issued.
For Freeport's mineral export tax rates, Industry Minister Mohammad Suleman Hidayat said that it would be 10 percent or lower. The duty rate is lower than the previous one, which was set at a progressive rate of 20 to 60 percent.
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