Wednesday, February 22, 2017

1) FREEPORT`S GOLD MINE IN PAPUA LARGEST IN THE WORLD


2) Wanted: a Win-Win Agreement with Freeport
3) Amnesty International State of the World Report 2016/2017
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WEDNESDAY, 22 FEBRUARY, 2017 | 07:16 WIB


An aerial view shows the site of the Grassberg Mine, operated by the U.S.-based Freeport-McMoran Copper & Gold, in Indonesia's Papua province. REUTERS/Muhammad Yamin/Files


1) FREEPORT`S GOLD MINE IN PAPUA LARGEST IN THE WORLD
TEMPO.CO, Jakarta - U.S.-based mining company Freeport-McMoRan Inc. has threatened to take Indonesia to international arbitration over mining permit dispute wherein its subsidiary PT Freeport Indonesia, the operator of Grasberg gold and copper mining complex in Papua, refuses to switch over its Contract of Work (CoW) to a special mining permit (IUPK).
Freeport-McMoRan president director Richard C. Adkerson said that negotiation with the Indonesian government is underway. Freeport has sent a letter to Energy and Mineral Resources Minister Ignasius Jonan on Friday last week explaining the dispute. Either party may take the dispute to international arbitration if no agreement was reached 120 days after the letter was sent.
Freeport-McMoran Inc. financial report as of December 2016 shows that the company has 26.9 billion pounds of copper and 25.8 million ounces of gold in reserve in Papua.
Freeport copper reserve in Indonesia is the third largest in the world after that of North and South America. Freeport’s gold reserve in Indonesia is its world’s biggest since it only has two mines i.e. in Indonesia and North America, which only has 0.3 million ounces of gold in reserve.
Grasberg is the world’s largest gold mine by production. Investingnews.com on December 1, 2016, ranked world’s 10 largest gold mines by production after analyzing the data from Thomas Reuters GFMS Gold Mine Economics. Below is the list the world’s largest mines.
1. Grasberg, Papua, Indonesia.
- Gold production: 1.23 million ounces.
2. Goldstrike, Nevada, United States.
- Gold production: 1.05 million ounces.
3. Cortez, Nevada, United States
- Gold production: 999,000 ounces.

 4. Pueblo Viejo, Dominican Republic.
- Gold production: 953,000 ounces.
5. Yanacocha, Cajamarca, Peru.
- Gold production: 918,000 ounces.
 6. Carlin, Nevada, United States.
- Gold production: 886,000 ounces.
 7. Lihir, Papua New Guinea.
- Gold production: 805,000 ounces.
 8. Boddington, Australia.
- Gold production: 794,000 ounces.
 9. Olimpiada, Russia.
- Gold production: 760,100 ounces.
 10. Kalgoorlie Super Pit, Australia.
- Gold production: 640,000 ounces.
ABDUL MALIK | VINDRY FLORENTIN
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WEDNESDAY, 22 FEBRUARY, 2017 | 14:26 WIB
2) Wanted: a Win-Win Agreement with Freeport

TEMPO.COJakarta - The government and Freeport Indonesia must reach an agreement soon on the alternation from a contract of work into a special mining business permit (IUPK). Negotiations do not have to be so protracted, let alone end up at the international arbitration court as Freeport has threatened.
The never-ending talks will cost both sides. There is still room for negotiation because Government Regulation No. 1/2017 covers this type of status change. The government and Freeport must be flexible, and not try for an all-out victory. They must both seek a cooperative formula that benefits both, but that is in line with the rules. This is needed not only to ensure that both benefit, but also to avoid legal problems at a later stage.
In accordance with the new regulation, a mining company holding a work contract must change it into an IUPK in order to export concentrate unrefined minerals. A company holding an IUPK is also obliged to divest 51 percent of its shares to Indonesia, in stages. Because it is only a permit, the government can revoke it at any time. This is different from a work contract, which cannot be cancelled until the end of the contract period.
Freeport has not directly agreed with this change of status. The US company has proposed a condition, namely that there is an investment stability agreement with the same standing for fiscal and legal certainty as a work contract. According to Freeport, this is very important for their long-term investment plan.
They also do not want to change the taxation principles in line with the regulation. In a work contract, the amount of tax and royalties is fixed until the end of the contract known as a nail-down, while under an IUPK, they would adhere to prevailing regulations. The government insists that Freeport comply with the regulation. Agreement could not be reached. As a result, since January 12, Freeport has not been able to export concentrate. Freeport subsequently laid off a number of employees and reduced their production of concentrate. But in the middle of the negotiations, last Friday the government reissued a permit to export concentrate for another year.
Renegotiation of an agreement is normal in business. It usually takes place if one or both parties discover something unfair in the existing agreement. And there are usually new offers to ensure the continuation of the cooperation. For example, in 1991 the New Order government asked for improvements to the first work contract that had been signed in 1967 despite the fact the 30-year agreement had not ended.
In order to reach a solution beneficial to both sides, Freeport should not use double standards in discharging its obligations. It should not choose a different regulation if it feels that one provision in the work contract is not to its advantage. Conversely, if there is a new rule seen as disadvantageous, Freeport should not return to the old work contract.
Whatever agreement is reached in the negotiations, the government's main consideration should be the principle contained in the Constitution, of bringing about the maximum benefit for the people. If the negotiations reach a dead end, neither the government including the local administration and the people of Papua nor Freeport will enjoy any rewards. Therefore, negotiations with the US mining giant must end with a mutually beneficial agreement. (*)
Read the full story in this week's edition of Tempo English Magazine

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3) Amnesty International State of the World Report 2016/2017

COUNTRY REPORT INDONESIA 2016/2017

Broad and vaguely worded laws were used to arbitrarily restrict the rights to freedom of expression, of peaceful assembly and of association. Despite the authorities’ commitments to resolve past cases of human rights violations, millions of victims and their families were still denied truth, justice and reparation. There were reports of human rights violations by security forces, including unlawful killings and the use of excessive or unnecessary force. At least 38 prisoners of conscience remained in detention. Four people were executed.
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Tuesday, February 21, 2017

1) Freeport’s Threat Is Not New, Jatam Says


2) Minister Expresses Confidence in Dispute Against Freeport
3) PNG, Indodesia sign agreement on Indonesian Bahasa Language training  
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TUESDAY, 21 FEBRUARY, 2017 | 21:48 WIB
1) Freeport’s Threat Is Not New, Jatam Says  

TEMPO.COJakarta - Melky Nahar, Mining Advocacy Network (Jatam) Campaign Leader said that Freeport Indonesia's attempt to settle the dispute between the mining company and the government at an international arbitration was not a new move. According to Melky, there are three issues frequently brought up by Freeport.
"The issues are layoffs, supports from local ethnics for Freeport's operation, and settling disputes in the international arbitration," Melky said in a discussion held in Jakarta on Tuesday, February 21, 2017.
Melky pointed out that the issues had been frequently brought up to pressure the government. As a result, Melky added, the government had always fulfilled Freeport's demand.
"I think this is a huge challenge for our government," Melky added.
Melky believed that Freeport has a full understanding of the government regulation on the mining license. However, Melky viewed that the US-based mining company refused to comply with the laws and regulations.
Melky hoped that the government would not give in to Freeport, although the government would have to face a lawsuit.
"These natural resources are for our children. Don't let Freeport dictate [how the government] manage the resources," Melky said.
DESTRIANITA

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TUESDAY, 21 FEBRUARY, 2017 | 22:10 WIB
2) Minister Expresses Confidence in Dispute Against Freeport

TEMPO.COJakarta - Coordinating Minister for Maritime Affairs Luhut Panjaitan said that the government has taken steps to face PT Freeport Indonesia's lawsuit. Luhut said that the options provided by the Energy and Mineral Resources Minister did not violate any laws.
However, Luhut said that the government is ready to face the lawsuit if Freeport insisted on bringing the dispute to the international arbitration.
"It's fine. We're ready. We will serve them well," Luhut said at the Presidential Palace in Jakarta on Tuesday, February 21, 2017.
Luhut believes that the Indonesian government has an opportunity to win the dispute. Under Law No. 4/2009 on mineral and coal mining, Luhut said that Freeport should have fulfilled its obligations since 2009. Included in the obligations are the requirements to divest 51 percent of its shares and construct a smelter.
"Freeport has not built a smelter and divested [its shares]. So, what else?" Luhut revealed.
Compared to other foreign companies in Indonesia, such as Chevron, Luhut said that Freeport should have been professional. Luhut viewed that laying off its employees was an unprofessional move.
Luhut explained that the dispute with Freeport was a business-to-business issue. Luhut asserted that as a sovereign country, Indonesia cannot be dictated. Therefore, Freeport Indonesia is expected to be professional in addressing existing issues.
On Monday, February 20, 2017, Freeport-McMoRan CEO Richard Adkerson said that his company gave a 120-day period to Indonesia to consider the dispute between the government and Freeport.
Adkerson said that Freeport would bring the dispute to the international arbitration if the government failed to meet Freeport's demands.
ADITYA BUDIMAN


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3) PNG, Indodesia sign agreement on Indonesian Bahasa Language training  
By Staff Reporter : PNG Today
The Indonesian Embassy in Port Moresby and the Department of Foreign Affairs of the Independent State of Papua New Guinea signed a Memorandum of Understanding (MOU) on the Indonesian Course Training.

The MOU was signed by His Excellency Ronald Josef PariamanManik, Ambassador of the republic of Indonesia and Mr. William Dihm, Secretary for Foreign Affairs of the Independent State of Papua New Guinea.

Twenty Foreign Service Officers from the Department and Five from the Royal Papua New Guinea Constabulary and Department of Defence will participate in the Bahasa language training for three months with an aims in building capacity for Foreign Service Officers and to equip officers to communicate effectively.

The MOU will bring Indonesia and PNG together more closely, to promote people to people exchanges and cultural exchanges as agreed to by both countries in the 2013 PNG- Indonesia Plan of Actions. Participants will not only learn the Indonesia Bashasa language but also deepen their understanding and appreciation of the relations between PNG and Indonesia and thus contribute to better management of issues of mutual interest and of border management activity and security cooperation.
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Copper price turns higher again – Grasberg gashed
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Freeport's iconic Grasberg mine in Papua produced more than 500,000 tonnes of copper and over 1m ounces of gold in 2016.
In New York on Monday copper for delivery in March jumped 1.6% to $2.7515 per pound or $6,066 a tonne after listed copper miner Freeport McMoRan said negotiations with the Indonesian government to restart exports from its Grasberg mine in Papua province has stalled. Copper is trading at levels last seen late May 2015 with year-to-date gains of just under 9%.
Phoenix-Arizona-based Freeport said in an update as a result its operating subsidiary in the country PT-FI "is proceeding with its plan to suspend investments in Papua, reduce its production by approximately 60 percent from normal levels and implement cost savings plans involving significant reductions in its work force and spending levels with local suppliers."
Freeport said its 25%-owned smelter in the Asian nation which has been hit by a strike expects to resume operations in March, but warned that its first quarter production has taken a substantial hit:
Assuming resumption of PT Smelting’s operations in March and a continuation of the ban on exports, FCX estimates its first quarter sales will be reduced, resulting in deferrals of approximately 170 million pounds and 270,000 ounces, representing a reduction of approximately 17 percent for copper and 59 percent for gold of its consolidated first quarter sales.
Freeport Indonesia is proceeding with its plan to suspend investments in Papua and reduce its production by approximately 60 percent from normal levels
In January Freeport said for each month of delay in obtaining approval to export, the Indonesian subsidiary's share of production is projected to be reduced by approximately 32,000 tonnes of copper and 100,000 ounces of gold.
Freeport also said consolidated sales volumes from Indonesia mining operations assuming normal operations, including the resumption of concentrate exports in February 2017 and the renewal of its smelters export license are expected to total 590,000 tonnes of copper and 2.2 million ounces of gold for the year 2017.

Force majeure at Escondida

The copper price is also being kept on the boil after BHP Billiton declared force majeure at its Escondida mine in Chile ten days ago saying it could no longer meet contractual obligations on metals shipments from the mine, the world's largest copper operation by a wide margin.
The union representing some 2,500 striking workers at Escondida last week agreed to participate in government mediation, and according to a Reuters report BHP will be attending a meeting on Monday if blockades of non-striking workers and contractors are lifted.
BHP operates and majority owns the mine with fellow Melbourne diversified giant Rio Tinto. The previous labour deal was signed four years ago when copper was trading around $3.40 a pound.
In its recent financial results BHP expected full-year production at Escondida of 1.07 million tonnes, which gives the mine a nearly 5% shares of global primary copper production. BHP also cut full year guidance by 40,000 tonnes to 1.62m tonnes.
After a relatively quiet year in 2016 for supply disruptions (there is around a 6% production swing factor in global production of over 20 million tonnes) due to bad weather, labour action and other unforeseen events, 2017 is already off to a bad start.
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Monday, February 20, 2017

1) Indonesia ready for Freeport tribunal


2) Freeport Explains Refusal on Mining Permit
3) Freeport gives government four months to negotiate 
new settlement
4) Compromise Amid Potential Massive Layoffs
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http://www.thejakartapost.com/news/2017/02/20/indonesia-ready-for-freeport-tribunal.html
1) Indonesia ready for Freeport tribunal
Linda Yulisman
The Jakarta Post Jakarta | Mon, February 20, 2017 | 06:24 am

In its latest move to settle a dispute over mining policy, the government has challenged United States mining giant Freeport McMoran to go to an international arbitration tribunal for a fair result.
Recently, the Energy and Mineral Resources Ministry granted approval to PT Freeport Indonesia, the local subsidiary of the politically connected gold and copper miner, to convert its contract of work (CoW) into a special mining license (IUPK). In so doing, the government will require the company to divest 51 percent of its shares and build a smelter within five years. As compensation, the government will allow Freeport to continue exporting copper concentrate.
Energy and Mineral Resources Minister Ignasius Jonan asserted that resorting to arbitration was a legal right. However, he said the government did not expect to face Freeport at an international tribunal because such a move would negatively impact their partnership.
“Nevertheless, it is a better measure than exploiting employee layoffs as a means to push the government,” Jonan said in a statement on Saturday.
Jonan also called on Freeport, the country’s largest taxpayer and oldest foreign investor, not to be “allergic” to the idea of divesting 51 percent of its CoW and the newly issued Government Regulation No. 1/2017. So far, the company has divested 9.36 percent of its shares.
The government on Friday issued a recommendation for Freeport, allowing the shipment of 1.1 million tons of copper concentrate until Feb. 16, 2018. Freeport operates Grasberg mine, the world’s second-largest copper mine, in Timika, Papua.
The recommendation was given after a five-week halt on exports. The halt in operations caused a reduction in working times, affecting some 33,000 workers. The government and Freeport have divergent views on divestment and investment guarantees and this is causing friction between the two.
Freeport has consistently stated it will only agree to the contract conversion if it secures a guarantee from the government on the firm’s long-term investment stability, including fiscal and legal certainty, as already stipulated in the CoW signed in 1991.
“PT Freeport Indonesia will keep protecting its rights under the contract of work while cooperating with the government to achieve a substitute agreement that can satisfy both parties,” Freeport spokesperson Riza Pratama said via a text message to The Jakarta Post on Sunday. Riza, however, declined to comment on any possible future moves to take the case to arbitration.
Apart from the divestment issue, the possibility of Freeport taking the case to arbitration has been stirred by a ruling from a tax court stipulating that the firm pay US$469 million in water taxes and penalties to the Papua provincial administration for the use of water between 2011 and 2015.
An internal shake-up that caused Chappy Hakim to resign from the post of president director on Saturday has also raised speculation over an arbitrationmediated dispute settlement.
Chappy, a retired air chief marshal who took the top position only three months ago, allegedly opposed the option of going to arbitration.
Kurtubi, a legislator from House of Representatives Commission VII overseeing energy and mining, said it would be better for Freeport to avoid a direct confrontation with the government through an arbitration process as the company had largely benefitted from the CoW system over the past 40 years.
“It [the government] has a big chance [of winning the dispute] because the [2009] Mining Law still acknowledges the CoW until it expires,” Kurtubi told the over the phone. “Freeport’s CoW will terminate in 2021 and after that there will be no CoWs in Indonesia, whoever the president will be. So Freeport’s demand to continue its current CoW is not realistic.”
Hikmahanto Juwono, an expert in international law at the University of Indonesia, emphasized the government’s favorable position should it meet with Freeport at a tribunal.
“If this case is taken to arbitration, the government is in a strong position because it never discriminated against Freeport. It has provided the company with alternatives, including allowing an extension of the contract of work,” Hikmahanto said. The expert suggested that the government pay attention to the desire of the Indonesian people to gain a greater degree of control over Freeport.
Despite the sizeable costs of going to arbitration, the current government should proceed because breaching the law could end in impeachment, he added.
According to a government source, the damage claim proposed by Freeport could amount to at least $8.3 billion.
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https://en.tempo.co/read/news/2017/02/20/056848470/Freeport-Explains-Refusal-on-Mining-Permit
MONDAY, 20 FEBRUARY, 2017 | 21:20 WIB
2) Freeport Explains Refusal on Mining Permit
TEMPO.COJakarta - PT Freeport Indonesia is consistently reluctant in changing their operations from the previous Contract of Work (CoW) into a special mining business permit (IUPK).
"For a number of reasons, we cannot accept the condition," said President and CEO of Freeport-McMoran Inc. Richard C. Adkerson on Monday, February 20, 2017.
According to Adkerson, the Indonesian government has already provided an export permit which requires PT Freeport to switch operations into an IUPK. The changes to an IUPK, Adkerson said, does not provide a sense of guarantee for the company's business operation. This is the reason why he demanded a legal and fiscal guarantee for Freeport.
Adkerson referred to Law No. 4 of 2009, regarding Mineral and Coal Mining that states that the CoW can continue to be valid. Although Freeport did not object with the IUPK, the company would like to continue operating under the original CoW in parallel with the IUPK.
PT Freeport has sent a letter to the Minister of Energy and Mineral Resources on Friday, February 17, 2017. The letter explains the differences in opinions between the company and the Indonesian government.
VINDRY FLORENTIN
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http://www.thejakartapost.com/news/2017/02/20/freeport-gives-government-four-months-to-negotiate-new-settlement.html
3) Freeport gives government four months to negotiate new settlement
Jakarta | Mon, February 20, 2017 | 03:13 pm
Richard C. Adkerson, the president and CEO of Freeport-McMoRan, has said his company will give the Indonesian government four months to negotiate a new settlement with the company in relation to a dispute over Freeport’s contract to operate the Grasberg mine in Papua.
If the negotiations fail, the company will go to an international arbitration tribunal to seek a resolution to the dispute, he added.
Adkerson said Freeport had told the Energy and Mineral Resources Ministry on Jan. 17 that the government had violated its contract of work (CoW) when it effectively terminated the contract, initially signed in 1991, and demanded that Freeport convert to a special mining license (IUPK).
“There are 120 days for the government and Freeport to resolve these differences and if they cannot be resolved, we will go through an arbitration process,” said Adkerson as reported by tribunnews.comon Monday.
The dispute started when the government issued a regulation stipulating that mining companies that wanted to continue exporting cooper concentrates must alter their agreements from CoWs into IUPKs.
Adkerson, however, claims that the 2009 Mineral and Coal Mining Law clearly states that Freeport’s CoW is still valid. As a consequence of this, Adkerson argues that the government does not have the right to demand that Freeport alter its contract.
“We cannot just give up our rights that have been given to us in the CoW,” Adkerson said in a press statement received by The Jakarta Post on Monday. (bbn)
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4) Compromise Amid Potential Massive Layoffs
Jakarta. US mining giant Freeport-McMoRan hopes to reach a compromise with the Indonesian government in renegotiations of its mining contract to stave off potential massive layoffs, a top executive said on Monday (20/02).
Freeport Indonesia, the mining giant's local unit, laid off about 10 percent of its expatriate workers on Friday and will continue to let go of its contract workers this week, Freeport-McMoRan president and chief executive Richard Adkerson said in a press conference in Jakarta.
"I sincerely hope we can find a compromise," he said.
Freeport Indonesia's fact sheet shows that the company employs 32,416 workers, with 12,085 of them full-time and the rest as contractors. Of its employees, 152 are expatriates, 4,321 Papuans and 7,612 non-Papuans.
The dispute follows the government's ban on copper concentrate exports, which came into effect on Jan. 12. The ban is aimed at boosting the country's smelting industry, but Freeport argues that it would reduce output from its Grasberg mine by around 70 million pounds of copper per month.
Freeport and the government have been negotiating the terms of the company's special mining permit to replace the previous contract, following the implementation of the new mining regulation.
"The government says that we can export if we forfeit our contract. Freeport's position is that we cannot give up [the] contract. So, today, we're at [an] impasse," Adkerson said.
He said Freeport-McMoRan, which owns more than 90 percent of Freeport Indonesia, has not received dividends from its Indonesian unit for the past five years and will reduce its costs.
Freeport's annual capital expenditure amounts to about $1 billion, and operating expenses to around $2 billion, the chief executive said.
"We had to shut down significant parts of our operations because there's no place to store or ship the concentrate," he said.
The only option for Freeport Indonesia to comply with the regulation is to ship concentrate to its smelter in Gresik, East Java, which can only take about 40 percent of the company's normal output.
Adkerson said the company reserved the right to start arbitration against the government.
However, taking the dispute to arbitration could harm Freeport's relationship with the government, Energy and Mineral Resources Minister Ignasius Jonan said on Saturday, as quoted by Reuters.
But Jonan said "it would be a much better step rather than always using the issue of firing workers as a tool to pressure the government."
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Saturday, February 18, 2017

1) CEO resigns after force majeure on copper


1) CEO resigns after force majeure on copper 
2) Freeport Indonesia chief resigns as dispute over mining policy intensifies
3) 5.1-Magnitude Quake Hits Jayapura
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1) CEO resigns after force majeure on copper 
Posted 18 Feb 2017 23:00

JAKARTA: Chappy Hakim, chief executive of miner Freeport-McMoran Inc's Indonesian unit, has resigned, the company said on Saturday, after the parent firm declared force majeure on copper concentrate shipments from its Grasberg mine in Papua.
Freeport, which has been negotiating with the Indonesian government after halting exports due to new mining rules, said on Friday it could not meet contractual obligations for copper concentrate shipments from the giant mine following a five-week export stoppage.

JAKARTA: Chappy Hakim, chief executive of miner Freeport-McMoran Inc's Indonesian unit, has resigned, the company said on Saturday, after the parent firm declared force majeure on copper concentrate shipments from its Grasberg mine in Papua.
Freeport, which has been negotiating with the Indonesian government after halting exports due to new mining rules, said on Friday it could not meet contractual obligations for copper concentrate shipments from the giant mine following a five-week export stoppage.
All work has stopped at the mine, the world's second largest for copper, a union leader said. Hakim, a former air force chief, had only been in the job for a few months. Freeport Indonesia hoped he would be able to use his political connections to help the firm navigate its way through a period of regulatory uncertainty.
"I have decided it is in the best interests of PTFI (Freeport Indonesia) and my family to step down from my duties as president director while continuing to support the company in an advisory role," Hakim said in a company statement.
A Freeport Indonesia spokesman said he could not confirm who Hakim's successor would be.
Freeport was the second big copper producer in a week to declare force majeure, after BHP Billiton did so on Feb. 10 for Escondida in Chile, where a strike had grounded the world's largest mine.
Grasberg was expected to produce 800,000 tonnes of copper in 2017, about 3.5 percent of global supply, said Jefferies analyst Chris LaFemina. Coupled with Escondida, the mines represent some 10 percent of global supply, he said.
Under new mining rules that Indonesia introduced in January, Freeport had to switch from the contract of work it had operated under since 1967 to a special mining permit before applying for export permits.
The new permit requires Freeport to pay taxes and royalties it was previously exempt from and divest up to 51 percent of its Indonesian unit, an increase from a previously set 30 percent. To date, it has divested 9.36 percent.
Indonesia's Mining Minister Ignasius Jonan on Saturday said Freeport had refused the government's offer of a six-month transition period in which the company can negotiate terms for its new mining permit.
Freeport could begin exporting again if it agreed to the transition period, Jonan said.
His ministry on Friday recommended that Freeport be allowed to export 1.1 million tonnes of copper concentrates until Feb. 16, 2018.
The recommendation was conditional on Freeport accepting the special permit, said the parent company's spokesman Eric Kinneberg, repeating that the Phoenix, Arizona-based miner would only agree to a permit that provided the same fiscal and legal protection as currently.
Jonan said that bringing the dispute to an arbitrator could hurt the relationship between the company and the government.
"But it would be a much better step rather than always using the issue of firing workers as a tool to pressure the government," Jonan said.
(Reporting by Agustinus Beo Da Costa; Additional reporting by Wilda Asmarini; Writing by Gayatri Suroyo and Susan Taylor; Editing by Ed Davies and John Stonestreet)
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2) Freeport Indonesia chief resigns as dispute over mining policy intensifiesJakarta | Sat, February 18, 2017 | 05:16 pm
PT Freeport Indonesia announced on Saturday the immediate resignation of Chappy Hakim as its president director, only three months after his appointment as the mining giant's top executive.
In a press release, Freeport Indonesia did not specify when Chappy, a retired air chief marshal, would officially step down. However, it said he would move to an advisory role with the company.
“Serving as Freeport Indonesia president director involves an extraordinary commitment of time. I have decided it is in the best interests of Freeport Indonesia and my family to step down from my duties as president director while continuing to support the company in an advisory role,” Chappy said as quoted in the release.
Chappy's resignation occurred as the company, a subsidiary of United States-based Freeport-McMoRan, fights against complying with the government’s latest mining policy, which stipulates that miners must convert their current contracts of work (CoWs) into special mining permits (IUPKs) in exchange for permission to continue exporting certain mineral ores and concentrates. 
Freeport has repeatedly said it would not agree to the contract conversion unless the government provided assurance of long-term investment stability, consisting of fiscal and legal certainty, in accordance with its CoW signed in 1991.
Freeport-McMoRan CEO and president Richard C. Adkerson thanked Chappy for his contributions to the company.
“We understand that this was a difficult decision for Pak Chappy to make. We appreciate his service to our company and his support. We look forward to his continued advice and counsel,” he said.
Chappy, also known as an aviation industry expert and prolific writer, was appointed as Freeport Indonesia’s top executive in November. The company previously appointed retired military officer Air Vice Marshall (ret.) Maroef Sjamsoeddin as president director. (hwa


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SATURDAY, 18 FEBRUARY, 2017 | 08:54 WIB
3) 5.1-Magnitude Quake Hits Jayapura
TEMPO.COJayapura - An earthquake measuring 5.1 on the Richter scale shook the Papua provincial capital of Jayapura on Friday night, forcing local residents to rush outdoors.
The epicenter of the quake which struck at 08.21 p.m. local time was located 53 km northwest of Jayapura district at a depth of 12 km, chief of the Angkasapura geophysics station Cahyo Nugroho said.
The quake was strongly felt by people living in Jayapura city, Jayapura district, and Keerom district, Nugroho said.
There was no immediate report of casualties or material damage.
 ANTARA
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Friday, February 17, 2017

1) Freeport declares force majeure on Indonesia mine -spokesman

1) Freeport declares force majeure on Indonesia mine -spokesman

2) Rebel Musik to raise awareness on West Papua struggle

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1) Freeport declares force majeure on Indonesia mine -spokesman

Feb 17 Freeport-McMoRan Inc, the world's biggest publicly traded copper miner, has declared force majeure at its Grasberg mine in Indonesia, which cannot meet contractual obligations on copper concentrate shipments, a spokesman told Reuters on Friday
Exports of copper concentrate from the mine have been suspended for more than a month, and last week production at the Papua, Indonesia mine came to a standstill. (Reporting by Susan Taylor; Editing by Chizu Nomiyama)

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2) Rebel Musik to raise awareness 

on West Papua struggle

It’s all about using your talent to spread a message, says Richard Mogu, an artist from the Central Province of PNG.

Mogu, is part of the Rebel Musik collaboration taking the stage of XO state in Melbourne, next Friday, February 24.

Rebel Musik, he says, will raise awareness on the struggle of West Papua and other ignored issues.

Put together as an initiative of Aireleke – a musician and recognised activist for West Papua, the group of talented musicians from PNG and West Papua will voice the concern on the musical stage.

 “Music is an art form but should not be taken for the aesthetics of it only – the beauty of art as an organised sound.

“I believe we can use music as a tool to raise awareness and reach a wider and greater audience far more quickly.

“I personally do gospel music but in this case, we are raising the message of the silent majority.

“I look forward to the performance, particularly, what it will stir – will it get people up and dancing? Will it make authorities stop and ask what we’re singing about?” he said.

Mogu will be part of the backing band and will also appear as an artist to perform at least two songs.

“It’s been a while performing overseas so I’m excited for this,” he added.

Mogu leaves today for Melbourne.: LoopVanuatu

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1) Government to focus on improving quality of lecturers in Papua



1) Government to focus on improving quality of lecturers in Papua

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Timika, Papua (ANTARA News) - The government will prioritize improving the quality of lecturers in Papua through the issuance of a certification of competence.

"The certification is intended to produce graduates having sound knowledge and skills," Research, Technology, and Higher Education Minister Muhammad Nasir stated here on Friday.

The minister remarked that the government will focus on improving the quality of lecturers working in polytechnics and universities.

"The government urges polytechnics to create a qualified workforce through the issuance of a certification of competence," he said.

Vocational colleges should produce qualified human resources in an attempt to meet the industry demand.

The government will assist lecturers in obtaining certification through education and financing.

"In Papua, the government is concentrating on improving the quality of workforce engaged in the tourism and health sectors," he remarked.

The lecturers in polytechnics should clear a competency test in a bid to educate the students on the certification of competence.

"Only six percent of the vocational colleges are in Indonesia. In fact, the country has 4,529 universities that produce more academics," he pointed out.

President Joko Widodo (Jokowi) had earlier called on the Indonesian Chamber of Commerce and Industry (Kadin) to help improve the quality of education offered by vocational schools across the country.

"We need millions of skilled human resources, so Kadin can help to improve the quality of education in vocational schools," President Jokowi said while opening the 2016 Kadin Leadership National Meeting at the Borobudur Hotel.

The president stated that Indonesia will benefit from a demographic bonus after 2020 when the number of people of the productive age will be higher than the number of elderly and children.

The younger generation should continue to build its capacity and capabilities in accordance with any formal and non-formal education they acquire. Only then will Indonesia be able to take advantage of the demographic bonus.

This demographic bonus will help the development of the creative economy in the country.

The greater the number of people of the productive age in Indonesia, the more internet users we will see. This will increase the nations creative ability and help to throw up new ideas to create value-added products of high quality.(*)

Editor: Heru


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FRIDAY, 17 FEBRUARY, 2017 | 23:06 WIB
2) Gov't Issues Freeport Export Recommendation  
TEMPO.COJakarta - The Energy and Mineral Resources Ministry issued export recommendation licenses for PT Freeport Indonesia (PT FI) and PT Amman Mineral Nusa Tenggara (PT AMNT).
The export recommendation for Freeport was issued based on a request letter No. 571/OPD/II/2017 delivered by the company on February, 2017. Meanwhile, the export recommendation for PT Amman Mineral Nusa Tenggara was issued on February 17, 2017.
"PT FI and PT AMNT both have declared their commitment to construct smelter," said Sujatmiko, Chief of Communication, Public Relationship and Ministerial Cooperation of the Energy and Mineral Resources Ministry in a written statement dated Friday, February 17, 2017.
The export recommendation was issued in accordance with the Energy and Mineral Resources Regulation No. 6 of 2017 and Trade Minister Regulation No. 1/M-DAG/PER/1/2017.
Sujatmiko added that the government will continue to monitor the progress of the smelter construction once every six months. The export recommendation will be revoked if both companies failed to fulfill their commitment in smelter construction.
GHOIDA RAHMAH

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3) Mining Ministry Backs Freeport's Copper Concentrate Exports
Jakarta. Indonesia's mining ministry said on Friday (17/02) it has issued a recommendation that is expected to allow the local unit of Freeport McMoRan Inc to resume copper concentrate exports within days.
The announcement comes after a more than one-month stoppage which push global copper prices to 21-month highs this week.
Freeport will be allowed to export 1.1 million tonnes of copper concentrate over the next one year, the mining ministry said in a statement seen by Reuters.
Reuters
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Fri Feb 17, 2017 | 8:04 AM EST
4) Indonesia gives Freeport green light to resume copper exports
Indonesia's mining ministry recommended on Friday that Freeport-McMoran Inc's Indonesian unit be granted a permit to export 1.1 million tonnes of copper concentrates until Feb. 16, 2018, the ministry said in a statement.
The announcement comes after a more than month-long export stoppage that brought production at Freeport's giant Grasberg mine in Papua, Indonesia, to a standstill last week that helped push copper prices to near 21-month highs.
The ministry also recommended that fellow copper miner Amman Mineral Nusa Tenggara be permitted to export 675,000 tonnes of copper concentrate, also up to Feb 16, 2018.
The recommendations were issued to the miners based on commitments made by the pair to develop smelters in Indonesia, the statement said, noting that progress on their smelter projects would be evaluated independently at least every six months.
"Where six-month development progress is not in accordance with commitments, the export recommendation will be revoked."