Freeport Indonesia is in preliminary talks with the government to secure an extension for its copper concentrate export relaxation permit, aiming to continue exports beyond the current deadline.
Tony Wenas, CEO of Freeport Indonesia, mentioned that while there has been no formal request submitted to the Ministry of Energy and Mineral Resources, initial discussions about the extension are underway. The company is eyeing an extension until December 2024, allowing them to continue exporting part of their production.
Previously, on July 24, 2023, Freeport Indonesia received a permit, allowing the export of 1.7 million tons of copper concentrate until May 2024. This period was to accommodate the completion of their Manyar smelter.
The current export allowance falls under Regulation Number 7 of 2023, established on June 9, 2023, which dictates terms for companies committed to completing their purification facilities. They are permitted to sell a predetermined quantity of processed products abroad until May 31, 2024.
Contrasting this, Freeport’s recent quarterly report indicated that the Manyar smelter’s construction, valued at $3 billion, is only 84% complete, with expected completion by mid-2024. Full operational capacity isn’t anticipated until December 2024, necessitating the requested extension.
The status of this extension is still uncertain, with further discussions required among various government departments. Dadan Kusdiana, Secretary-General of the Ministry of Energy and Mineral Resources, affirmed that deliberations involving multiple stakeholders, including the Ministry of Finance, are part of the process. The focus remains on adhering to regulations while acknowledging the significant role of investment.
