"Based on 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 2021, then they may submit the application in 2019 at the earliest," the deputy minister clarified here on Friday.
Article 45 of Government Regulation No 23 of 2010 on minerals and coal mining activities stipulates that application for contract extension must be submitted two years at the earliest or six months at the latest, before the contract expires.
The Deputy Minister denied that the government had extended the mining contract of PT Freeport.
"There is no extension yet. There is neither lobbying about it so far. We will follow the procedures based on the government regulation in force," he asserted.
Susilo Siswoutomo explained that PT Freeport Indonesia could submit an application for extension of its contract in 2019 at the earliest.
Freeport, he pointed out, must follow the provisions as stipulated in the government regulation on it.
The current working contract of PT Freeport Indonesia was signed in 1991 and is scheduled to expire in 2021.
But the giant copper and gold mining company from the US has submitted an application for the extension of its contract until the next 20 years or 2041 citing assurance of investment returns.
The extension option is linked to the on-going work contract negotiation.
Freeport is preparing an investment of US$16 billion to develop a deep ore zone (DOZ) mining with a return investment after 2012. (*)
Editor: Heru Purwanto
Copyright © ANTARA 2014
