Friday, January 29, 2016

1) Documentary Transforms Sydney Benefit Gig Into Global Event


2) NDUGA PLANS MASS IMMUNISATION PROGRAM IN EIGHT HEALTH CENTERS

3) PAPUA TO HAVE THREE NEW AIRPORTS

4) Freeport’s Grasberg mine still working as export permit expires
5) Freeport’s export permit  suspended
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http://themusic.com.au/news/all/2016/01/29/documentary-transforms-sydney-charity-gig-into-global-event/
1) Documentary Transforms Sydney Benefit Gig Into Global Event 
Jan 29th 2016 | 7:59pm | Daniel Cribb 
A documentary from Sydney musician-turned-filmmaker Anthony ‘Ash’ Brennan has seen a local charity gig for West Papuan blow up into a global event.
The benefit show, dubbed Punks For West Papua, was initiated by NSW act Diggers With Attitude to highlight the ongoing genocide in West Papua, and quickly spread to other Australian states, seeing 50 bands in seven cities June of last year.
Brennan filmed the shows and decided to use the footage for a documentary, and after interviewing musicians involved, two-time Nobel peace prize nominee Benny Wenda, journalist Hugh Lunn and more, caught the attention of the United Liberation Movement For West Papua.
“Since the film’s come out, punk bands from all around the world have contacted the campaign and have contacted us to start their own shows,” Brennan told theMusic.com.au.
“Jody [Bartolo] from Diggers With Attitude is in negotiations with the campaign to have a global Punks For West Papua for June of this year, so we’re very excited."
Funds from the sale of the documentary are being donated to the United Liberation Movement For West Papua, but Brennan said it’s more about raising awareness for the cause.
“With more people aware of it, hopefully we can see some change. As a nation, we can then pressure the government. It will become an issue at an election.”
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2) NDUGA PLANS MASS IMMUNISATION PROGRAM IN EIGHT HEALTH CENTERS
Jan 23, 2016
Wamena, Jubi – Eight community health centers in Nduga Regency are planning a mass immunization program that will be held at Mbua, Mbumuyalma and Dal sub-districts.
The head of the Health Problem Monitoring at the Nduga Health Office, Amad Lokbere, said on Friday (22/1/2016) in Wamena, Jayawijaya Regency that the program has been partially implemented in January and would be run until March 2016 that continue with the launching of National Immunization Week on a large scale.
“National Immunization Week would be held in March 2016 in Nduga Regency, and the event would be organized by Papua and Nduga health offices,” he said.
Meanwhile both provincial and regional health offices are still providing health service and treatment to recover the exceptional case of pertussis in Mbua sub-district.
“Nduga Regional Health Office has formed a team and we already went to the field in order to follow up this exceptional case in Nduga, we also have provided treatment there,” he said.
Earlier, the Papua Health Office Chief, Aloysius Giyai, said he has deployed a team to assist the recovery of pertussis patients in Mbua sub-district. The team has been departed on Wednesday (20/1/2016).
Team Coordinator Yamamoto Sasarari said the team consist of doctors, supervisor on immunization, nurses and analysts from Papua Health Office and Mbua sub-district Health Center Chief held a free health service and immunization program in Mbua sub-district.
“It is the fourth time the team provide health service in Mbua sub-district. During the service conducted for two days on Thursday to Friday (21-22/01), the number of residents came for treatment are approximately 200, that are consisting of 70 toddlers and 107 adults,” he said. (*/rom)
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3) PAPUA TO HAVE THREE NEW AIRPORTS



Jayapura, Jubi – The Ministry of transport (MoT) plans to build three airports in Yahukimo, Jayawijaya, and Nabire, Papua.
“The development of these airports is due to  the needs of pioneering flights and  the MoT only accommodates it,” said the head of the Papua Provincial Transport Department, Yusuf Yambeyabdi, in Jayapura on Friday (22/01/2016).
Yambeyabdi said the provincial government through the department of transportation only supported what is planned in each regency, including the development of the airport.

He added one of the airports will be located in Wanggar in Nabire,  to be financed by the central government’s budget and expected to be completed in 2018.
“We did support for the completion of Wanggar airport development, because it is one of the airports that are built by the central government,” said Yambeyabdi.
Earlier, President Joko Widodo, Wednesday (30/12/2015) asked the ministry of transportation and local governments to work together to improve services at the airport.
“Synergy is the key word in improving service to the people of Papua,” said Jokowi.
On that occasion, Jokowi did  not just ask for improvement in terms of service at the airport but also the airline must pay attention on the condition of the aircraft.
“There should be no compromise on the safety of passengers and flight safety, especially going to fly in the middle of the mountainous area,” he said. (Alexander Loen)
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4) Freeport’s Grasberg mine still working as export permit expires
Permit unlikely to be renewed on Friday.
Eko Listiyorini and Yoga Rusmana (Bloomberg)  | 29 January 2016 09:33
Freeport-McMoRan said one of the world’s biggest copper and gold mines continues to operate normally after its export license expired without an extension being granted by the Indonesian government.
Mining and milling operations remain normal at the Grasberg deposit in Papua province, Riza Pratama, a spokesman for Freeport Indonesia, the company’s local unit, said by text message on Friday. Grasberg’s copper capacity is second only to Escondida in Chile, according to the International Copper Study Group. It has the single largest gold reserves in the world, according to the company’s website.
Indonesia is renegotiating mining contracts with foreign companies, arguing that too much of the nation’s mineral wealth is disappearing overseas. The government has banned the export of metal ores to encourage the construction of domestic processing.
Grasberg’s export permit, granted every six months, is necessary for Freeport to ship concentrates from the mine. It expired on Thursday and is unlikely to be renewed on Friday because the company hasn’t met the government’s requirements, Bambang Gatot Ariyono, director general of minerals and coal at the Energy & Mineral Resources Ministry, told reporters. Talks are ongoing and the company is confident it will renew the permit, Freeport said earlier.
Smelter Deposit
Indonesia has asked for a $530 million deposit on a new smelter in return for renewing the permit to ship 1 million metric tons over the next six months. Freeport chief executive officer Richard Adkerson this week said that request was inconsistent with the company’s previous understanding with the government.
The Phoenix-based producer is struggling to contend with a historic collapse in metals prices. Moody’s Investors Service lowered its credit rating four levels to junk on Wednesday, while Adkerson has said he would consider selling any operation, in full or in part, to weather the slump.
Energy and Mineral Resources Minister Sudirman Said told reporters on Wednesday that the government’s priority was to ensure operations continue so that the local economy is unaffected. He said the deposit would be proof of Freeport’s commitment to the smelter.
Indonesia Contract
Freeport, which mined $1.7 billion of copper and $1.4 billion of gold in 2015 from Grasberg, also wants to extend its contract to operate in Indonesia. That expires in 2021, and the company has agreed to sell shares as part of the negotiation. An Indonesian official said this month that Freeport had offered the government an 11% stake in its local unit for $1.7 billion. Freeport has confirmed an offer was made though it didn’t give details.
Handing over $530 million would undermine the CEO’s efforts to shore up the company’s balance sheet amid the worst commodities rout in a generation, which has led to five straight quarters of losses and a 75% share price plunge in the past year. For Indonesia, a halt at the giant Grasberg mine would costs jobs and tax revenue.
Indonesia will contribute 29% of Freeport’s copper sales this year, up from 18% in 2015, as the company plans to double sales from Grasberg to 1.48 billion pounds in 2016 from 744 million pounds last year, the company said in a presentation this week.
Operations at Grasberg, in the mountains of Papua, have been plagued by labor strife in recent years. Workers seeking higher wages took strike action in 2011 and the mine was closed for months following a tunnel collapse in 2013 that killed 28 people. Exports were disrupted in 2014 after a dispute with the Indonesian government over export duties.
©2016 Bloomberg News
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5) Freeport’s export permit  suspended
Raras Cahyafitri, The Jakarta Post, Jakarta | Business | Fri, January 29 2016, 5:29 PM -
Copper mining giant PT Freeport Indonesia will see its exports halted starting Friday after failing to realize its commitment to smelter development.

The Energy and Mineral Resources Ministry's mineral and coal director general, Bambang Gatot Ariyono, said his office had yet to issue a recommendation for the extension of Freeport’s export license as the company had yet to meet the government’s prerequisites for smelter development to process its products locally, as required by the 2009 Mining Law.

"We haven't issued the recommendation. They said that they would be cooperative [meeting the government’s prerequisites]. However, they have yet to give details," Bambang said. The recommendation is necessary for the company to apply for an export permit with the Trade Ministry.

Freeport Indonesia, a subsidiary of the US-based Freeport-McMoRan Inc., had a six-month permit to export its semifinished copper concentrate that expired on Thursday. The permit is needed as the export of unprocessed minerals was banned at the start of 2014. 

The government has asked Freeport to show progress on its planned smelter in Gresik, East Java, before it gives another recommendation for exports. 

The Energy and Mineral Resources Ministry proposed two conditions that would allow the firm to extend the permit for another six months: pay 5 percent in export tax and deposit US$530 million as a guarantee that the company will continue to make progress on the smelter.

"The company declines to pay US$530 million as a guarantee and has yet to propose options to replace the requirement," Bambang said.

Under a contract of work (CoW) signed in 1991 between the company and the government, Freeport Indonesia has the rights to export its product. 

"If the company turns again to the contract of work, all points under the renegotiation will be canceled," Bambang added, referring to the government’s attempt to adjust several matters in the previous contract to align with the 2009 Mining Law.

He also played down concerns that the miner would challenge the country in international arbitration.

The current export permit is the third Freeport has held since 2014. Previously, similar back-and-forth negotiations with the government also took place. The firm eventually found ways to obtain the permits. 

“These points [5 percent duty and $530 million guarantee] are inconsistent with the agreement that we worked with the government in the beginning, in mid-2014, and our discussion with the government would continue,” Freeport McMoRan CEO Richard Adkerson said earlier. 

“We have full confidence that the government will come up with a favorable decision and issue the export license to ensure continuity of our mining operations, and in doing so will serve the interest of Indonesia’s mining industry in general," he added.

Energy and Mineral Resources Minister Sudirman Said stated earlier, "I’ve received report that the company is asking for further consideration as it is currently affected by low commodity prices and poor finance. So, if it cannot meet the requirements, let’s find a solution regarding things that can be the warranty for its commitment to progress the smelter project." - 
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1) FORMATION OF PAPUA BARAT DAYA PROVINCE IS STILL PENDING


2) LAWMAKER WARNS INDONESIA TO NOT UNDERESTIMATE PAPUA ISSUE AT MSG FORUM
3) PT NABIRE BARU TO LEAVE YERESIAM CUSTOMARY LAND
4) SEVEN CHILDREN DIE OF MEASLES AT KIMAAM SUB-DISTRICT
5) HIGH SCHOOL TEACHERS ON STRIKE
6) MINING ACTIVITY IN TEMBAGAPURA TO CONTINUE EVEN WITHOUT FREEPORT : MINISTER SUDIRMAN SAID
7) PAPUA RESIDENTS TO BE ALERTED ON EXTREME WEATHER 

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1) FORMATION OF PAPUA BARAT DAYA PROVINCE IS STILL PENDING
Jan 25, 2016






Ilustration – Jub

Sorong, Jubi – The Formation Of  Papua Barat Daya Province Under New Autonomous Regions (DOB) Is Awaiting A Government Regulation In Accordance To Law No. 23/2014 On Regional Administration.
Papua Barat legislator from Maybrat Regency, Jhon Asmuruf, said on Monday (25/1/2016) in Sorong that the new proposed province along with Maybrat Sau Regency have been discussed and approved by the Indonesian House Representatives and the Regional Representative Council.
The next process, he said, has been submitted to the Ministry of Domestic Affairs to form a regulation because the split of region or DOB formation should be referred to the existing regulation, that is the Law No. 23/2014 on Regional Administrative.

He said the process of DOB formation has undergone the preparation phase for three years that determined by Government Regulation. If it declared eligible, the proposal of new region submitted to Indonesian House Representative and Regional Representative Council to set into an autonomous region in accordance to the law.
“Sorong Raya residents living in Sorong Municipality, Sorong Regency, Sorong Selatan Regency, Maybrat Regency and Raja Ampat Regency are expecting Papua Barat Daya Province could be realized soon, therefore the development of infrastructure, economic growth and community welfare could be materialized immediately,” he said.
Further the politician from Hanura Party asked to all society components in Sorong Raya region to support the formation of Papua Barat Daya Province that is still on going process.
“There should be no disagreement that even leading to conflict among community therefore the formation process of DOP Papua Barat Daya Province could run smoothly and could be realized soon,” he said. The formation of Papua Barat Daya Province, he further said, is the people’s aspiration to shorten the distance of government’s services to the people because the area is widespread. (*/rom)


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2) LAWMAKER WARNS INDONESIA TO NOT UNDERESTIMATE PAPUA ISSUE AT MSG FORUM
Jan 28, 2016
Jakarta, Jubi – Legislator Tantowi Yahya reminded the Indonesian Government to not underestimate the Papua issue and it has always been a burning topic among the Pacific countries under the Melanesian Spearhead Group (MSG).
“They (Pacific countries) have a desire to redo the referendum,” said Tantowi, a member of House of Representatives Commission I, during a discussion held Wednesday (27/1/2016) by the Indonesian Institute of Sciences titled “Following Up on President Jokowi’s Policy for Papua as Land of Peace”.
“They even formed a fact-finding team on human rights violation in Papua. The relation between Indonesia with the MSG countries such as Papua New Guinea, Fiji and Vanuatu is good, but there’s movement that cannot be underestimated. That is the movement to support the Freedom Papua,” said Tantowi.
Major General Yoedhi Swastono, another speaker at the seminar, said the MSG is more likely to discuss social problems and Melanesian culture, including Papua.
“ULMWP is the Indonesian-Melanesian representative abroad. Internally it was declared on 6 October 2015 in Ambon. The Indonesian-Melanesian brotherhood has been established by five governors of Papua, Papua Barat, Maluku, North Maluku and East Nusa Tenggara,” he said in this forum.
He said the Indonesian-Melanesian Brotherhood is the cultural organization under supervision of the Ministry of Internal Affairs. “So, it is not right if talking about Papua diaspora abroad only representing the Papuan community group,” he said,
But Tantowi disagreed, saying MSG is not the cultural forum but political forum. In every agendas set by the Pacific countries, it always put the human rights violations issue in Papua as topic of discussion.
According to him, the internationalized of Papua issues is very frightened. Now the result is started to see that more countries now give support to Papua to split from the Republic of Indonesia.
Within the last three years, he continued, he visited to Pacific countries for several times and conduct several secret meetings with Free Papua activists abroad.
“We see there is a change in desire. Previous they wanted the Indonesian Government to solve the problems of poverty, undeveloped and injustice. But now they finally found out that those issues are not marketable to be sold to the international community. Like or dislike it got the result, including the support from many countries who want Papua to be separated from Indonesia,” he said.
He also said the political riot that recently occurred in Indonesia has become an opportunity for Free Papua activists to conduct diplomatic movement. He said do not think the Free Papua activists to not pay attention on the Indonesian political riot. Now the Papua issue in the international community cannot be blocked.
“The Papua’s issue could not be solved only by the government, the coordination between ministries and government’s institutions is also weak. Besides both government and legislative council have different opinion on Papua problems. The government considered the problems are still about poverty, social gap, underdeveloped and injustice. While we see there is a shift of struggle sounded by Free Papua activists,” he added.
Meanwhile Latifah Anum Siregar said if the Indonesian Government wants to create a dialogue, it should integrate the stakeholders’ point of view. There shouldn’t be a different point of view. “Many parties also should be involved and those appointed by the president to manage Papua should be clear. Do not let one ministry come up with its agenda overlap with other ministries’ agenda,” said Siregar.
In the same place, Victor Mambor added that the question is now whether indigenous Papuans is really a concern of the Indonesian Government in Papua.  Which one the most important, indigenous Papuans or the land of Papua with all natural resources included?
During the time when the indigenous Papuans were being shot, killed, or so on, Indonesia was very slow in give response; even it seems careless.
“But when it happened in other places, its response was fast and every parties cared. For instance, the Paniai case, the incident was occurred in the midday, witnessed by hundreds of people, there is evidence of bullet chasing, but the perpetrators have not yet revealed until now. It might be not the people, indigenous Papuans that it wants, but our land and natural resources,” said Mambor.
Regarding to discussion raised by MSG countries members on Papua, he said, since 2010-2015 he had the opportunities to cover a number of MSG meeting. Papua issue did not appear from somewhere. He even considered that the issue discussed by MSG in 2015 was beyond compare to 2013.
“In that year it was clear that MSG stated it recognized the self-determination of West Papua and there were human rights violations. This issue would be raised all the time,” he said. (Arjuna Pademme/rom)
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3) PT NABIRE BARU TO LEAVE YERESIAM CUSTOMARY LAND
Jan 27, 2016

Jayapura, Jubi – Activists urged the oil palm company PT Nabire Baru to vacate the land of indigenous tribe Yeresiam Gua because it threatens the existence of the customary community who depend on forest and land.
“PT Nabire Baru should leave the customary land Yeresiam,” said Melianus Duwitau, the Student Independent Forum activist in a speech to support Yeresiam Tribe to sue the Decree No. 140/2008 about Business Permit issued for PT. Nabire Baru at Jayapura District Court on Tuesday (26/1/2016).
Duwitau said the company has violated against the right of customary community. It invaded, stole and destroyed the forest that is the resources of local economic. This invasion made people losing their forest and land for livelihood.

“The Company does not only destroy the nature, but also indirectly kill the local people. People could not sustain their life. Furthermore, it conducted the physical action by security forces. Not just stealing but also killing,” he said.
Duwitau asked the customary people to be united to reject and expel PT Nabire Baru. “The Company does not care whether people live or die. It only thinks about profit. We should expel the company like this,” he said.
Nauren Ikinia, Independent Forum activist, represented Yeresiam women said the company’s act to not respect the community rights has become a bad history. The local community would be destroyed because of the company system that only thinks about profit.
“We don’t want to be killed by capitalism. We do not want someday people said in this place (Papua) there were dark skinned and curly haired people,” she firmly rejected PT Nabire Baru to operate in Customary Land of Yerisiam Tribe. (Mawel Benny/rom)

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4) SEVEN CHILDREN DIE OF MEASLES AT KIMAAM SUB-DISTRICT
Jan 26, 2016
Merauke, Jubi –  Seven children have died of measles in five villages of Kimaam Sub-district, Merauke Regency this month.
The five villages are Kimaam, Mambum, Kiworo, Woner and Deka.
“They died because of measles,” a medic from Kimaam, Herman Kaimbe told Jubi at the Merauke Commission A Office on Monday (25/1/2016).
Thirty children were infected with rubeola or red measles but seven of those children could not be saved. Meanwhile the rest could be treated and on recovery process.
“We have treated and gave them medicines,” he revealed.
He admitted the medical workers including doctors and nurses were on duty and they worked together in providing health assistance.
“We did our best to help those children. But seven couldn’t be helped,” he said.
Merauke Health Office Chief Stevanus Osok when contacted by phone said he has not received any report about the seven children who died of measles.
“I am now out of Merauke. I will firstly check to my staff,” he said. (Frans L. Kobun/rom)
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5) HIGH SCHOOL TEACHERS ON STRIKE
Jan 26, 2016
Sorong, Jubi – Dozens of high school teachers working for SMA Negeri I Sorong Municipality, Papua Barat Province, went on strike on Tuesday to protest against the principal and the treasurer, accusing them of not being transparent in managing school funds.  
Only pupils who are on national test preparation class conducted the learning activity while other pupils just walked down through the school’s yard.
The 11th grade pupil Yunus (16 years old) whom reporter met at the school’s yard admitted they didn’t learn today because the teachers didn’t come.

“We don’t know what is really matter but today many teachers do not come and we have information that they are on the strike,” he said on Monday (25/1/2016)
According to a school staff, the number of teachers of SMA Negeri 1 Sorong Municipality is 40 but only 8 teachers were coming for teaching.
A teacher Abdul Manan when contacted said the teachers are on strike to protest against the principal and treasurer who are considered not being transparent in managing the school’s fund.
“We have made a written statement and submitted to the Education Office Chief and Commission A of Sorong Municipal Legislative Council proposing the principal and treasurer of SMA Negeri 1 to be replaced,” he said.
Sorong Municipal Education Office Chief, Dra. Hermin confirmed the education office would take action to solve the problem at that school; therefore the learning process would not be disturbed. (*/rom)
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6) MINING ACTIVITY IN TEMBAGAPURA TO CONTINUE EVEN WITHOUT FREEPORT : MINISTER SUDIRMAN SAID
Jan 25, 2016

Jakarta, Jubi – Indonesian Minister of Energy and Mineral Resources Sudirman Said said mining activities at Freeport Indonesia’s site located in Mimika, Papua should continue although even if Freeport had left due to the termination of its contract.
“Being extended or not, the management of mining in Mimika must be continued by anyone,” Said said in the Indonesian House Representatives Compound in Jakarta on last week. The statement was to answer the question from a Council’s member at Working Meeting of Commission VII of the Indonesian House Representative with the Ministry of Energy and Mineral Resources to discuss about whether the Freeport Indonesia’s Contract of Work should be extended or not.
Concerning to the pressure to terminate the Freeport’s contract, Sudirman Said said it could not be done immediately due to a lot of losses that might be incurred since, according to him, 92 percent of Mimika Regional Revenue originated from the mining sector.

“Additionally, 37 percent of our mining revenue is from there, besides there are thousands of workers work on mining sector and support about 30,000 households,” he said.
Related to the process of Freeport’s shares divestment amounted USD 1.7 billion which is currently in the evaluation phase of the bid price, he asserted the government would not respond any assumptions that rise and may interfere the evaluation process. “The Government would not respond it because currently it is also in the evaluation process, while we are in the ministry only to hold the right time,” he said.
About the evaluation team, he said the ministry would not form their own team, but only wait the result of the evaluation team by the Ministry of State Owned Enterprise. Nevertheless he still believes the price, which resulted from the evaluation, is the proper price although he expects the lowest price.
“Certainly we want the lowest price, but later the team should decide the best price. And for the team, the Ministry of State Owned Enterprise has appointed valuator and we would only observe from the distance to avoid the overlap,” he said.
Earlier, the Ministry of State Owned Enterprise Rini M Soemarno revealed the ministry has appointed two securities companies to conduct a review against the offer of Freeport’s shares divestment. Those companies are PT Mandiri Sekuritas (Persero) and PT Danareksa (Persero). Sudirman explained the obligation to divest that up to 30 % has been arranged in the Regional Regulation No. 77 2014, Article 97 Paragraph (1d).
Meanwhile, the obligation of 20 percent offer must be done for a year since a regulation was issued in accordance to Article 112D Paragraph (2a). Related to the offer of Freeport’s shares divestment, the Ministry of Energy and Mineral Resources through Directorate General of Mineral and Coal Resources has set a pricing team. (*/rom)

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7) PAPUA RESIDENTS TO BE ALERTED ON EXTREME WEATHER 
Jan 24, 2016
Jayapura, Jubi – Jayapura Municipal residents were alerted on extreme weather that has occurred since the beginning of the year because of the potential to cause flooding and landslides.
The head of Regional Disaster Management Agency (BPBD) of Papua Province, Didi Agus Prihatno on Saturday (23/1/2016) in Jayapura said the potential of disaster in Papua area is very high; furthermore the level of rainfall is moderate to heavy and sometimes windy.
“People should be aware and alert, they have no longer wait the government’s alert,” he said.

Specifically in Jayapura City, Didi said, Jayapura Municipal BPBD has conducted series of attempts to reduce the disaster risk, either through physical construction as well as awareness and capacity building in facing the threat of disaster (disaster mitigation).
“We give appreciation to Jayapura Municipal BPBD, they have conducted series of disaster mitigation and socialization to community,” he said.Jokowi Signs On to Instagram, Reaches 203k Followers
According to him, some flooding points in Jayapura City have been repaired, so that the heavy rain that fell over Jayapura City last night did not cause flooding. “The rain was heavy overnight, but no flooding in Jayapura City,” said Didi.
He added though Jayapura Meteorology, Climatology and Geophysics Agency often provided information on weather in printed and electronic media, regional/municipal BPBD of Papua Province is expected to prepare and help people in case of disaster.
“It’s including to immediately coordinate with related stakeholders in term of providing prompt response towards disaster if it’s occurred,” he said.
Meanwhile, the Head of Papua Social and Housing Office, Ribka Haluk, said the natural disasters such as flooding and landslide are often occurred in the remote areas in Papua, thus the regional governments, in particular the governments of Papua Highland areas, need to anticipate the risks through formation of disaster alerted villages.
“I ask regents to establish the disaster alerted villages,” said Haluk. (Alexander Loen/rom)
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Thursday, January 28, 2016

Indonesia, Freeport fail to reach deal over copper export permit

Thu Jan 28, 2016 1:24pm EST

Indonesia, Freeport fail to reach deal over copper export permit
JAKARTA | BY WILDA ASMARINI AND BERNADETTE CHRISTINA MUNTHE



Indonesia's government and Freeport McMoRan Inc on Thursday failed to reach a deal on extending the U.S. mining giant's six-month export permit, potentially halting shipments from the country's massive Grasberg copper and gold mine.
An export stoppage would deal a blow to Freeport's profits and deny the Indonesian government desperately needed revenueicon1.png from one of its biggest taxpayers. It could also buoy global copper prices, which have slipped 3 percent so far this year on worries about oversupply.
Freeport's six-month export permit for its Indonesian unit expired on Thursday and it was unclear how soon a new one would be issued as the two sides have yet to resolve a government demand that the U.S. firm first pay a $530 million deposit.
"It's done for today. For the next meeting with Freeport, there is no schedule so far," Bambang Gatot Ariyono, the mines ministry's directoricon1.png general of coal and minerals, told reporters.
"It's no problem if Freeport doesn't export tomorrow." 
Energy Minister Sudirman Said earlier this week had said he was certain the government would approve the export permit and was open to negotiations with Freeport on the $530 million deposit.
Freeport said in a statement it was still engaged in discussions with the Indonesian government and was confident Jakarta would issue the license.
Indonesia wants the deposit as a guarantee that the Phoenix, Arizona-based company will complete construction of another local smelter. The amount would add to an estimated $80 million that Freeport set aside in July 2015 to obtain its current export permit.
Said said Freeport must offer an alternative if does not want to provide the deposit to demonstrate its commitment to expanding Indonesia's smelter capacity.
Freeport CEOicon1.png Richard Adkerson said late on Tuesday the government's demand for a smelter deposit was "inconsistent" with an agreement reached between the two sides in mid-2014.
According to that agreement, Freeport must sell the government a greater share of the Grasberg copper and gold mine, located in the province of Papua, and invest in domestic processing to win an extension of its mining contract beyond 2021.
Usually, Freeport Indonesia produces about 220,000 tonnes of copper ore per day. About one-third usually goes to its domestic smelter at Gresik.
A prolonged interruption to the mine would affect about 24,000 workers at Grasberg, potentially leading to unrest in a region where Indonesia's government is trying to increase economic activity. 


(Reporting by Wilda Asmarini; With additional reporting by Susan Taylor in Toronto; Editing by Himani Sarkar, David Evans and Paul Simao)
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