JAKARTA (TheInsiderStories) - President Director of PT Freeport Indonesia Maroef Sjamsoeddin has tendered his resignation for personal reasons.
PT Freeport said in a statement that Freeport has accepted his resignation.
In the interim, Robert Schroeder, currently Director and Executive VP, will assume Maroef’s management responsibilities. All officers who had previously reported to the President Director will now report to Robert Schroeder.
Maroef Sjamsoeddin, former deputy head of State Intelligence Agency (BIN), has served as President Director of PT Freeport Indonesia over the past year and has been an advocate for Freeport in representing the company with the government of Indonesia, government authorities, the community in Papua and Freeport Workers.
Clementino Lamury, director and executive vice-president, will continue in his role as the company’s head of external affairs and has been assigned the primary responsibility of being the lead representative of the company in all meetings and interactions with the government of Indonesia.
The resignation of Maroef came as Freeport is seeking to extend its contract to develop underground mining in Grasberg mining site for another 20 years from 2021. Maroef also resigned as Freeport was in the process of divesting additional 10.64 percent of Freeport shares to the Indonesian government for US$1.7 billion.
Currently, Freeport owned 90.63 percent in FI and 9.36 percent owned by Indonesia.
Freeport stated on the letter to the government, valuation of 100 percent shares of Freeport was US$16.2 billion. Based on the Mining Law, Freeport has an obligation to divest 30 percent its unit shares until 2019.
Director General of Mineral and Coal Ministry of Energy and Mineral Resources, Bambang Gatot Aryono stated, government has 60 days to respond on the Freeport proposal. Results of the evaluation will be taken the government to negotiate with Freeport.
Minister of State Owned Enterprises (SOEs) Rini Soemarno was said that the consortium firm under her ministry is ready to buy 10.64 percent shares of FI.
Freeport Indonesia currently operates Grasberg mining site, the largest gold mine and third-largest copper mine in the world. The company holds a CoW due to expire in 2021, from the Indonesian government. Freeport is currently lobbying the government to secure certainty that it will obtain a contract extension.
“We have challenging times in the global commodity markets. We continue to work cooperatively with the government to ensure our ability to continue exporting copper concentrate so that PTFI can sustain in its current operation in Papua, to amend our Contract of Work so that we can extend our operations beyond 2021, and to develop new smelter capacity consistent with our commitment to the government of Indonesia,” Freeport said in a statement.
“As we work to address the current challenges, we are positive about the long-term future for our business in Indonesia. The Grasberg mineral district represents one of the great assets in the global mining industry,” the company said.
Maroef tendered resignation only few weeks after spokesperson of the Indonesian House of Representative Setya Novanto opted to resign after implicated in attempting to broker PT Freeport Indonesia and the government in return for favoritism. Novanto’s action caused public anger and prompted the Parliament’s ethical code conducted internal ‘trial’ on Novanto. (*)