The Trade Ministrys Director General of International Trade Oke Nurwan informed ANTARA in Jakarta on Monday that although the Ministry of Energy and Mineral Resources had released the export recommendation, both companies were yet to submit their EAL to the Ministry of Trade.
"Up until last Friday, both companies have yet to submit their EAL," he noted.
The Energy and Mineral Resources Ministry has released an Export Recommendation Permit for PT Freeport Indonesia and PT Amman Mineral Nusa Tenggara that will allow both companies to carry out raw mineral exports for the next year.
The recommendation letter was released based on the proposal bearing number 571/OPD/II/2017 submitted by PT Freeport Indonesia on February 16, 2017, while the permit for PT Amman Mineral Nusa Tenggara was granted following the proposal numbered 251/PD-RM/AMNT/II/2017 from the company on Feb 17.
PT Freeport is allowed to export 1,113,105 wet metric tons (WMT) of steel concentrate, while PT Amman Mineral is granted the permit to export 675,000 WMT of steel concentrate.
It was earlier reported that PT Freeport Indonesia had stopped its production activities with effect from Feb 10, this year, following the governments objective to have greater control on mineral resources.
The government has proposed that the Special Mining Operations Permit (IUPK) should be used in place of the existing Contract of Work (CoW).
PT Freeport is reluctant to agree to the Indonesian governments proposal, especially since IUPK holders are obliged to divest up to 51 percent of the shares, which means they will no longer be in full control of the company.
Furthermore, Freeport is planning to sue the government in the International Court of Arbitration.
Minister of Energy and Mineral Resources Ignasius Jonan had remarked on Feb 18 that PT Freeports plan to bring up the dispute in the International Court of Arbitration is legitimate, adding that the arbitration measure is far better as compared to raising issues on dismissal of employees as a tool to apply pressure on the government.
"Global corporations always treat their employees as valuable assets rather than as mere tools to gain profits," Jonan remarked.
Meanwhile, Freeport McMoRan Inc, the parent company of PT Freeport Indonesia, stated that the Indonesian government had stopped the CoW, signed in 1991, unilaterally and changed the status into an IUPK.
President and CEO of Freeport McMoRan Inc Richard C. Anderson stated at a press conference in Jakarta on Monday that his party cannot simply forego the legal rights included in the CoW.
Based on the companys records, Freeport had invested US$12 billion and is currently generating $15 billion and has absorbed 32 thousand Indonesian workers.
From 1992 to 2015, distribution of direct financial benefits between Indonesia and Freeport McMoran (FCX) are 60 percent for Indonesia (from taxes, royalties and dividends), totaled at US$16.5 billion, and 40 percent for FCX (dividends) with a total of US$10.8 billion. (*)
Editor: Heru Purwanto
Copyright © ANTARA 2017
