Tuesday, August 29, 2017

1) Papua aims to cut transmission chain of HIV

2) Expert Highlights Problems with Latest Freeport Deal
3) Govt Prepares Scheme for State Income from Freeport 
4) Freeport to seek Rio Tinto approval for deal with Indonesia on Grasberg mine
5) Indonesia Reaches Agreement With Freeport on New Mining Permit for Grasberg

1) Papua aims to cut transmission chain of HIV
Nethy Dharma Somba The Jakarta Post
Jayapura, Papua | Tue, August 29, 2017 | 05:46 pm
The Papua administration is stepping up efforts to prevent the spread of HIV by providing antibody tests to pregnant women seeking healthcare services at hospitals or community health centers.
By finding pregnant women who test positive for HIV, health authorities can take measures to prevent the transmission of the chronic disease to their babies.
“This is one of the ways to cut the HIV transmission chain in Papua,” Papua Health Agency secretary Silwanus Sumule said in a public dialogue in Jayapura on Tuesday.  
The Health Ministry’s HIV sub-directorate official Triya Novita Dinihari said the government was aiming to achieve the “three zeroes” by 2030, during which Indonesia would see no more new HIV/AIDS infections, AIDS-related deaths or stigma and discrimination against people living with HIV/AIDS (ODHA).
Triya said all stakeholders must work together because preventing HIV/AIDS was not the sole responsibility of the Health Ministry.
“All societal elements, including religious and traditional leaders and community figures, must be involved. This is because introducing HIV control and prevention in grassroots communities will be effective only if it involves leaders in society,” said Triya.
Data shows that 97 percent of HIV infections in Papua have been transmitted via sexual intercourse. Around 16,620, 57.57 percent, of total HIV cases in the province affect people at the productive age of between 25 and 49 years. 
The Papua Health Agency records that as of June, it found 27,771 HIV/AIDS cases, which had spread in the province since 1992. Of the total, 10,134 cases are HIV while the remaining cases are AIDS, of which 1,883 patients have died. (ebf)
WEDNESDAY, 30 AUGUST, 2017 | 01:30 WIB
2) Expert Highlights Problems with Latest Freeport Deal

TEMPO.COJakarta - The Indonesian government and American mining giant Freeport Indonesia finally agreed today on Tuesday, August 29. Despite this, legal mining expert of Universitas Tarumanegara Ahmad Redi argues that the deal has its flaws. 
The first is regarding Freeport’s special mining business permit (IUPK) that he considers is not in accordance with the mineral and coal law (UU Minerba). “According to the law, an IUPK can be given after the state reserve territory has been determined and approved by the House of Representatives. The IUPK itself is prioritized to be given to State Owned Enterprises,” Redi explained.
He also questions Freeport’s commitment in the deal to construct a domestic smelter within the five-year limit after the IUPK is issued. Redi argues that Freeport had long been promising to build one but is yet to be realized. 
He also claims that buying divested shares during the end of a working contract (KK) is a policy that is disadvantageous for Indonesia. "Because without buying out Freeport's divestments in 2021, Freeport could already be owned by the government," he said.
Freeport's stock divestment deal is stated in the extended working contract of 1991, where the company was initially obliged to divest 51 percent of its shares in 2011. But Redi regrets that Freeport has yet to realize the deal in the contract up until this moment. 
“This deal is reinforcing Freeport Indonesia in exploiting Indonesia’s natural resources,” Redi stated.
TUESDAY, 29 AUGUST, 2017 | 17:02 WIB
3) Govt Prepares Scheme for State Income from Freeport  

TEMPO.COJakarta - The government will soon formulate a state revenue scheme from Freeport Indonesia. The scheme will be designed after the government meets and the US-based miner reaches an agreement in the negotiations over its mining contract.
One of the points to agree on is the increase in state revenues contributed by the mining company.
"[Future] state revenue from Freeport Indonesia's operations must be greater than what we received through the Contract of Work," Finance Minister Sri Mulyani said in a press conference in Jakarta, Tuesday, August 29.
Sri Mulyani did not elaborate on the composition, percentage, and amount of state income, saying that there are other elements to be taken into accounts such as Non-Tax State Revenues (PNBP), royalties, and taxes.
Details of the scheme, said Sri Mulyani, will be attached to the Special Mining Business License granted to Freeport Indonesia.
In addition to state revenues, another agreement that needs to be reached is the 51-percent divestment of Freeport Indonesia's shares for national ownership. Energy and Mineral Resources Minister Ignatius Jonan said the government is currently negotiating the details of the stages and timing of the divestment.
Jonan said that the divestment scheme will also be attached to the Special Mining Business License granted to Freeport Indonesia.
The next agreement is related the construction of smelter by Freeport Indonesia within five years after the IUPK is issued, or no later than 2022—unless a force majeure happened within said period.  

AUGUST 29 2017 - 11:28PM
4) Freeport to seek Rio Tinto approval for deal with Indonesia on Grasberg mine
Jakarta: US mining giant Freeport McMoRan has signalled it believes a breakthrough agreement allowing it to continue operating a massive gold and copper mine in Indonesia will win the approval of Rio Tinto.
Indonesian Energy and Minister Resources Minister Ignasius Jonan said on Tuesday that after "tough negotiations" Freeport had agreed to give up its majority stake in the Grasberg mine to Indonesia.
The agreement will require Freeport to cut its ownership of the mine from 90.64 per cent to 49 per cent, provide more state revenue, adopt a special licence and build a second smelter by 2022.
Freeport's chief executive Richard Adkerson said the mining company would need to obtain approval for any changes from Rio Tinto, which has been a partner in the operations in Papua, a restive eastern province of Indonesia, since the mid-1990s.
"We have been working with Rio Tinto on a co-operative basis as Freeport has represented these operations with the government," Mr Adkerson said in Jakarta.
He said his own view was that if Freeport viewed the changes as appropriate and beneficial it would be able to obtain Rio Tinto's agreement.

Fairfax Media sought comment from Rio Tinto.

Grasberg is the world’s second-largest copper mine.

Rio Tinto is entitled to a 40 per cent share of output from Grasberg above specific levels until 2021 and 40 per cent of all production after 2021.
However the company indicated in April it might not take ownership of 40 per cent of copper production after 2021.
"Rio Tinto's participation beyond 2021 is likely to be affected due to the application of force majeure provisions in the joint venture agreement between Rio Tinto and Freeport McMoRan," it said at the time.
The preceding month Rio Tinto Group chief Jean-Sebastien Jacques had flagged it was considering the future of its stake in the Grasberg mine.
The result of the negotiation is in line with President Joko Widodo's instruction to put forward the national interest.
Indonesian minister Ignasius Jonan
The mine was at the centre of violent protests in August after Freeport furloughed thousands of workers earlier this year in response to export restrictions related to the lengthy permit dispute with Indonesia.
Indonesia eventually granted a six-month permit allowing Freeport to temporarily resume copper concentrate exports, but they were at risk of being again halted when the temporary permit expired in October.
The timing and price of the divestment are yet to be resolved, with Mr Adkerson emphasising that the agreement to divest the 51 per cent stake and build a second smelter were "major" concessions.
Mr Jonan said Freeport would be able to immediately apply for a 10-year permit extension.
Its current 30-year contract at Grasberg is due to expire in four years.
"We agreed that the first extension is for 10 years and and the next one will be for 10 years," Mr Jonan said.
"Legally they will not be automatic."  
Freeport is one of Indonesia's largest taxpayers. It had been seeking an agreement that would run until 2041 and provide certainty for a multibillion-dollar underground expansion.
Mr Jonan said the government and Freeport would work together to immediately finalise the documentation of the agreed structure and Freeport would get the necessary corporate approval.
"The result of the negotiation is in line with President Joko Widodo's instruction to put forward the national interest, the interest of the Papuan people, state sovereignty in managing natural resources and providing a conducive investment climate," he said.
With Karuni Rompies

5) Indonesia Reaches Agreement With Freeport on New Mining Permit for Grasberg
By : Wilda Asmarinia & Hidayat Setiaji | on 11:01 AM August 29, 2017
JakartaIndonesia and Freeport-McMoRan on Tuesday (29/08) reached an agreement to allow the US miner to keep operating its giant Grasberg copper and gold mine, though the timing and price of a 51 percent divestment in the mine still needs to be worked out.
Freeport, the world's biggest publicly traded copper company, can apply for an immediate 10-year permit extension to mine at Grasberg beyond 2021, said Indonesian Energy and Mineral Resources Minister Ignatius Jonan. Grasberg is the world's second-biggest copper mine.
"The mandate of the president, which has been agreed to by Freeport, is that the divestment should reach 51 percent in total," Jonan told a joint news conference, alongside Freeport's Chief Executive Officer Richard Adkerson. "All that is left is to discuss the timing. The price will be negotiated later," said Jonan.
Revised rules in Indonesia require miners to divest a 51 percent stake, relinquish arbitration rights and pay new taxes and royalties. Freeport has insisted on getting the same fiscal and legal protection as in its current contract.
The mining minister said Freeport could "immediately apply" for its first 10-year permit extension and a second extension could be proposed before 2031.
Freeport's copper concentrate exports from Indonesia were at risk of being halted again if the two sides had failed to reach an agreement on a new mining permit before the current temporary permit expired in October. Freeport exports around two-thirds of the copper concentrate it produces at Grasberg and the remainder is processed domestically.
Phoenix, Arizona-based Freeport has held lengthy talks with the Indonesian government over issues such as the amount and valuation of the divestment and the development of a new smelter to extend its 30-year mining contract, which is due to expire in four years time.
Adkerson said the existing contract of work would remain in place until everything was settled, but stressed that the company had given ground.
"We want to emphasize that to divest the 51 percent [stake] and to build a [second] smelter are a major concession," said Adkerson.
Adkerson, who has been personally involved in the negotiations, in April had called the divestment rule "a form of expropriation".
Freeport had said it wanted an agreement that would run to 2041 and provide the fiscal and legal certainty it needed to proceed with a multi-billion dollar underground expansion for Grasberg. The mine is located in Indonesia's eastern province of Papua, on the island of New Guinea.

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