"We agreed not to talk first before we have made a deal. The point is special mining license (IUPK). We continue to discuss this with Freeport," special staff of the Energy and Mineral resources (ESDM) Minister Hadi M. Djuraid said.
Jakarta (ANTARA News) - The government and PT Freeport Indonesia (FI) have not reached an agreement on new mining contract, an official said here on Wednesday.

"We agreed not to talk first before we have made a deal. The point is special mining license (IUPK). We continue to discuss this with Freeport," special staff of the Energy and Mineral resources (ESDM) Minister Hadi M. Djuraid said here on Wednesday.

Hadi said PT Freeport still asked for fiscal guarantee, but he said, it is a long term request as it involved a number of related ministries.

Meanwhile, the minister of state enterprises has indicated that the holding company for state mining company that would be formed soon this year would take over 51 percent stake in Freeport Indonesia including 9.36 percent stake already in the hand of the government.

"The holding company could take over the majority stake in Freeport. The government is in the process of establishing the holding company which would grouped four large state companies- PT Inalum, PT Aneka Tambang, PT Bukit Asam Tbk, and PT Timah Tbk," a Deputy for Restructuring and Business expansion at the Ministry of State Enterprises Aloysius K. has said.

Aloysius said PT Inalum, the operator of the aluminum smelter in Asahan, North Sumatra, would be the holding company waiting for the government regulation as the legal umbrella.

Earlier, Deputy for Mining Business, Strategic Industry and Media Fajar Harry Sampurno said the main purpose of forming the holding company is to create a large, highly competitive and strong mining company.

"The central Government is the first in the list, followed by regional administration and the state enterprises ministry in acquiring the divested shares of Freeport, If named by the government, state enterprises are ready to take over up to 51 percent of the shares of Freeport," Harry said.

Freeport Indonesia, has large copper and gold mines in Papua, but it has stopped production after it was banned from exporting its copper concentrate.

The government has issued a regulation banning exports of unprocessed minerals in a bid to boost development of processing industry in the country.

Freeport abruptly stopped production on February 10, 2017 and after disagreement with the government over its status of its contract.

The subsidiary of the US mining giant Freeport McMoRun Copper and Gold threatened to bring the case to international arbitration court but the Indonesian government ignored the threat. (*)

Editor: Heru Purwanto
Copyright © ANTARA 2017