JAKARTA (TheInsiderStories) – Indonesian government issued copper export permit for PT Freeport Indonesia (PTFI) and local miner PT Amman Mineral Nusa Tenggara (AMNT), said one official on Monday (19/02).
According to Minerals Director of EMR Ministry Bambang Susigit through a text message, local unit of U.S miner Freeport McMoRan Inc. (NYSE: FCX) handed quota to export 1,247,866 wet metric tonnes (wmt) of copper concentrate.
While, subsidiary of publicly lister PT Medco Energi Internasional Tbk (IDX: MEDC), AMNT, get a quota to export 450,826 wmt of copper concentrate. Both companies get export license from Feb, 15, 2018 to Feb, 15, 2019.
The reason the ministry give permit, he said, based on achievement of smelter development by both of the companies. So far the progress of PTFI’s smelter has build 2.4 per cent of the program (bigger than target). While, AMNT’s smelter has develop 10.1 per cent of target.
The Indonesian government finally embarked on meaningful action to complete the long takeover of the PTFI mining operation. Through the Ministry of State Owned Enterprises, the government is ready to acquire the U.S.-based copper and gold mining company’s shares, through a national mining holding company led by PT Indonesia Asahan Aluminium (Inalum).
The government plans to use Inalum as a vehicle to take over the operations of Grasberg, among the world’s largest copper and gold mines, in Papua Province, from Freeport McMoran.
FCX currently owns 81.28 per cent of local subsidiary Freeport Indonesia, but following intense negotiations, it has finally agreed to shed up to a 51 per cent stake to local entities. The Indonesian government currently owns a 9.36 per cent stake in the Indonesian unit.