"The company and Indonesian government have reached the negotiations final stage, which is divided into three parts," the minister added at the Commissions meeting room in Jakarta.
They discussed about the conversion of the companys permit from Works Contract (KK) to a special mining license (IUPK). The company has agreed to the governments condition till this stage, Jonan stated.
The new special mining license becomes mandatory to legalize trading activity if the company wants to continue exporting copper concentrate for the next five years, Jonan noted earlier.
The Indonesian government had earlier issued a new mining regulation, which requires the mining company to hold a new special license.
The special mining license, which is divided into exploration and production operations permits, also regulates the new investment and taxation schemes.
The company had earlier asked the government to issue a flexible regulation regarding investment and tax mechanisms, Jonan remarked, adding that the Finance Ministry will set the rates further.
"The provincial governments need to participate in the forthcoming discussion, in order to determine the fiscal policy and other requirements of mining license," Jonan pointed out.
The new license may require the company to pay several provincial taxes such as retribution, the minister reiterated.
Meanwhile, Thursdays talks also discussed the companys commitment to extend the future contract of the workers.
Issues on workers remain important as previously the company has suspended 522 employees and fired around 29 people.
However, Jonan stated that the company had only fired 4 percent of his 12 thousand workers.
"Similar to other companies, Freeport hires and fires its employees," the minister revealed.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2017
