Wednesday, July 26, 2017

1) Freeport still seeks contract extension to 2041

2) Freeport to Issue New shares for Divestment Requirements
3) Indonesia Environment Minister Wants Permanent Ban on Licences to Use Forest Land

1) Freeport still seeks contract extension to 2041
Jakarta | Wed, July 26, 2017 | 05:33 pm

A vehicle passes through gold and copper mining company PT Freeport Indonesia’s mining area in Grasberg, Mimika, Papua. (JP/Nethy Dharma Somba)

Gold and copper mining company PT Freeport Indonesia is still seeking a contract extension to 2041 as its representatives are negotiating with the government about the conversion of its Contract of Work (CoW) agreement into a Special Mining License (IUPK).
Meanwhile, the government has offered Freeport an extension of its operational permit until 2031 as long as the company agrees to switch to the IUPK scheme.
Freeport Indonesia vice president corporate communications Riza Pratama said the contract extension until 2041 was needed so that Freeport could meet the requirements set by the government.
Read also: Indonesia, Freeport still differ on IUPK scheme
“[The extension is needed] so that we can invest US$15 billion for improving our underground mining and $2.3 billion for constructing the smelter as well as for a tradeoff of the divestment scheme,” said Riza in Jakarta on Wednesday, as reported by
Apart from being required to construct a smelter, the company is also required to divest 51 percent of its shares to Indonesian entities.
Riza said Freeport Indonesia, a subsidiary of United States-based mining giant Freeport-McMoRan, and the government were still negotiating.
“We are negotiating those issues with the government. All of the issues are negotiated as one package,” he stressed. (bbn)


WEDNESDAY, 26 JULY, 2017 | 22:00 WIB
2) Freeport to Issue New shares for Divestment Requirements

TEMPO.COJakarta - Teguh Pamudji, secretary of the Energy and Mineral Resources Ministry, said that giant mining company Freeport is set to issue new stocks in the process of complying with the government’s divestment rule.
A majority of Freeport’s divested stocks will be acquired by the Indonesian government.
“New stocks will be issued in purchasing Freeport’s stocks. So it doesn’t refer to Freeport’s existing stock,” said Teguh Pamudji today.
According to Teguh, the government currently owns 9.36 percent of Freeport’s shares. In order to own 51 percent of the company’s shares, the government needs to acquire 41 percent of Freeport’s shares.
Teguh revealed that 41 percent of the shares will be acquired by a state-owned company that will be appointed by an independent valuator. The independent valuator, according to Teguh, will be assigned to calculate Freeport’s share value based on the company’s market value. 
The government expects the negotiation with Freeport will be finalized before the end of October.


3) Indonesia Environment Minister Wants Permanent Ban on Licences to Use Forest Land
By : REUTERS | on 3:30 PM July 24, 2017

Jakarta. Indonesia's environment minister said on Monday (24/07) she wants to make permanent a moratorium on issuing new licences to use land designated as primary forest and peatland.
The moratorium, part of an effort to reduce emissions from fires caused by deforestation, was extended by President Joko Widodo for a third time in May.
"So far its only been extended, and extended again. I want a permanent [moratorium]," said Environment and Forestry Minister Siti Nurbaya Bakar. "Our primary forest cannot be cleared out."
Indonesia is prone to outbreaks of forest fires during dry seasons, often blamed on the draining of peatland forests and land clearance for agriculture such as the cultivation of palm oil.
The resulting choking smoke from the world's biggest palm oil producer often blows across to neighboring countries like Singapore and Malaysia, slashing visibility and causing a health hazard.
Established in 2011, the moratorium covered an area of more than 66 million hectares by November 2016.

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