KONTAN.CO.ID - JAKARTA. The Indonesia government is preparing to extend the Special Mining Business Permit (IUPK) for PT Vale Indonesia Tbk (INCO) for 20 years.

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said, the transition process from the Work Contract (KK) to IUPK has been completed.

"(It has been extended) according to what was requested, roughly (20 years) MIND ID is the biggest there," said Arifin at the Ministry of ESDM, Friday (22/3).

Arifin confirmed, the Ministry of ESDM has given a recommendation for this IUPK extension. This week the signing of the IUPK document for Vale Indonesia will be carried out.

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After this extension, Vale Indonesia is required to complete its downstream commitment within the next five years.

One of the projects that is the focus is the Pomalaa Smelter Project worth US$ 4.5 billion. This project is confirmed to be included in the INCO IUPK document later.

Arifin Tasrif revealed, the High-Pressure Acid Leach (HPAL) Pomalaa Block project will be a condition stipulated for the extension of INCO's operating permit.

"Now we give the mining business extension, with the note that he must build a smelter with Ford, if he doesn't build it, it's canceled (his IUPK)," said Arifin in Gresik, quoted Sunday (3/3).

Arifin added, the government will regularly evaluate the development of INCO's downstream projects after the extension of the permit.

It is noted, INCO has four KK permits with production operation stages that will end on December 27-28, 2025.

Editor: Khomarul Hidayat