"Formally they have come and said that they would adhere to the country`s minerals mining law," he said after meeting with PT Freeport Indonesia leadership at his office here on Friday.
He said sometime ago PT Freeport said it would not build a smelter because based on its study it was not feasible and its profit margin was not big.
"The act could not be justified because the law requires that by 2014 all minerals raw materials must be processed or included in the industrial process in Indonesia first before being exported," he said.
He said copper mined by Freeport had so far been exported directly because they had no intention to build a smelter in Indonesia.
"I have also said that no party would be given a privilege and allowed not to implement the law," he said.
He said after holding several dialogs with PT Freeport they said that they were ready and would make a feasibility study and prepared agreements with two or three investors who were willing to participate.
"All investors who would sign would cooperate with foreign investors because of the technology to be used and the huge capital needed reaching more than US$1.5 billion," he said.
Law Number 4 of 2009 allows no export of raw minerals starting in January 2014 and obliges miners to develop smelting plants before 2014.
He said the mandate was followed by energy and mineral resource minister regulation number 7 of 2012 on increasing the added value of minerals through minerals smelting process.
(H-YH/B003)
(T.SYS/B/H-YH/B003) 26-07-2013 20:23:04
(T.SYS/B/H-YH/B003) 26-07-2013 20:23:04
Reporter: Vicki Febrianto
Editor: Jafar M Sidik
Copyright © ANTARA 2013
