JAKARTA. Ahead of the weeklong Idul Fitri holiday and while public attention remains on the election results, the Energy and Mineral Resources Ministry’s Directorate General for Minerals and Coal and copper giant PT Freeport Indonesia are pushing hard to reach a deal in the renegotiation of the company’s mining contract. The directorate general and Freeport is expecting to sign a memorandum of understanding (MoU), which will be used to amend the latter’s contract of work, on Friday, according to director general R. Sukhyar. The government is struggling to renegotiate a number of current mining contracts of work to bring them in line with the 2009 Mining Law. Under the MoU, Freeport will provide $115 million surety bonds to show its commitment to building a smelter and pay reduced export duties and higher royalties. Freeport is also seeking assurances that it will be able to continue its operation after its contract expires in 2021.
Govt-Freeport to sign MoU, stuck in detail
JAKARTA. Ahead of the weeklong Idul Fitri holiday and while public attention remains on the election results, the Energy and Mineral Resources Ministry’s Directorate General for Minerals and Coal and copper giant PT Freeport Indonesia are pushing hard to reach a deal in the renegotiation of the company’s mining contract. The directorate general and Freeport is expecting to sign a memorandum of understanding (MoU), which will be used to amend the latter’s contract of work, on Friday, according to director general R. Sukhyar. The government is struggling to renegotiate a number of current mining contracts of work to bring them in line with the 2009 Mining Law. Under the MoU, Freeport will provide $115 million surety bonds to show its commitment to building a smelter and pay reduced export duties and higher royalties. Freeport is also seeking assurances that it will be able to continue its operation after its contract expires in 2021.