"There has not been any extension as some strategic issues are still to be discussed by the new government," Hatta said.Jakarta (ANTARA News) - Chief economic minister Hatta Rajasa denied that the mining contract of PT Freeport Indonesia has been extended until 2041.
"There has not been any extension as some strategic issues are still to be discussed by the new government," he explained here on Friday.
He clarified that re-negotiation of the contract was not urgent and was not the priority of the current government as the contracts expiration is still a long way away.
"It is wrong if it is not settled. But is it an urgent thing to do or not if the contract is to expire only in 2021? If it is not, the let the new government deal with it or decide whether it will be concluded or extended," he asserted.
Based on Article 45 of Government Regulation Number 23 of 2010, on minerals and coal mining activities, application for contract extension must be submitted two years at the earliest or six months at the latest before the contract expires.
Deputy minister of energy and mineral resources Susilo Siswoutomo noted that PT Freeport Indonesia could submit an application for extension of its contract in 2019 at the earliest.
"According to the Government Regulation, the application for the extension of its operation could only be submitted two years before the end of its contract. So, if the contract expires in 2012, they may submit the application in 2019 at the earliest," he explained.
The current working contract of PT Freeport Indonesia was signed in 1991 and would expire in 2012.
The giant copper and gold mining company from the US however has submitted an application for the extension of its contract until the next 20 years or 2041 citing assurance of investment return. (*)
Editor: Heru Purwanto
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