Exports of concentrate by PT Freeport Indonesia and coal are expected to contribute up to US$5 billion to the country`s export earning.
Jakarta (ANTARA News) - The government has issued approval for PT Freeport Indonesia to resume exports of copper concentrate after protracted negotiations.

Exports of mineral ores have been banned since January 2014 to promote processing industry in the country.

"Export license has been issued for 940,000 WMT," Deputy Trade Minister Bayu Krisnamurthi said here on Tuesday.

Bayu said the agreement between the government and PT Freeport Indonesia is expected to improve Indonesias export performance especially in mineral sector.

He said exports of concentrate by PT Freeport Indonesia and coal are expected to contribute up to US$5 billion to the countrys export earning.

PT Freeport Indonesia has met all conditions to allow it to resume exports of its copper concentrate, Bayu said.

The company has also signed an agreement on amendment to its mining contract and paid a certain amount of fund as a guarantee that it would build a smelter for its minerals.

The guarantee fund is around 5 percent of the investment needed for the smelter.

PT Freeport and the government signed a memorandum of understanding to amend its mining contract on July 25, 2014.

Its export quota this year will reach 756,300 tons of copper concentrate worth around US$1.56 billion. It will also supply 523,000 tons to a domestic smelter of PT Smelting Gresik.

Finance Minister Chatib Basri said on Monday the country is expected to chalk up surplus in its international trade in the remaining months of this year.

A number of mining companies have regained their license to export certain mineral concentrate, Chatib said.

The law banning exports of mineral concentrates effective since January 2014 have resulted in a deficit in the countrys international trade over the past several months.

"Exports of minerals and coal could start start immediately as the goods are already available," he added.

PT Freeport holds large stock of copper concentrate worth US$1.5 billion after it stopped exports since January.

The trade ministry has issued registered exporters documents for 81 companies and six of the companies are exporters of mineral concentrates including Freeport and Newmont Nusa Tenggara (NNT).

Freeport Indonesia of Freeport McMoRan Copper & Gold and NNT of Newmont Mining Corp. also a US company, account for more than 95 percent of the countrys copper production. (*)

Editor: Heru Purwanto
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