The Ministry of Energy and Mineral Resources (ESDM) is still evaluating plans to apply for an extension of PT Freeport Indonesia's (PTFI) copper concentrate export license for the 2023 period. Special Staff to the Minister of Energy and Mineral Resources Irwandy Arif said his ministry was still studying a number of related factors such as production realization, the Covid-19 pandemic, to the development of the completion of the smelter. "All factors must be evaluated such as technical factors in the upstream mining, the pandemic and the progress of the smelter construction," Irwandy told Bisnis, Sunday (5/2/2023).
Irwandy emphasized that his ministry does not yet have a specific decision or recommendation regarding the plan to extend the copper concentrate export license. He reasoned that the evaluation process was still being carried out by the related team.
On the other hand, he said, his ministry is also still observing the applicable laws and regulations and contracts between the government and related companies to determine this year's export recommendations. "The basic principle is the applicable laws and regulations," he said.
As previously reported, PTFI is completing the application for an extension of the copper concentrate export license for the next year. PTFI still has an export permit until March 2023. PTFI spokesperson Katri Krisnati said PTFI was still waiting for the results of verification of the development of a copper concentrate processing and refining factory or smelter project in the JIIPE Special Economic Zone (KEK), Gresik, East Java as a condition for applying for an export permit extension. next year. "The results of this verification will be together with the approval of the 2023 RKAB which has been given by the government through ESDM as a requirement for applying for an extension of PTFI's export permit," said Katri when confirmed, Sunday (5/2/2023). Meanwhile, the team of independent verifiers is currently still conducting an assessment related to the progress of the smelter construction for the period August 2022 to January 2023. The plan is for the verification results to be completed in the third week of this month. "PTFI will apply for an extension of the export permit in accordance with the production and marketing operation plan that has been approved by the government in the 2023 RKAB," he said.
In the release of Freeport-McMoRan Inc.'s IV/2022 quarterly financial and operating reports, one of PTFI's shareholders, stated that PTFI's export permit extension is scheduled for March 2023. Meanwhile, based on PTFI's special mining business permit (IUPK), the company's copper concentrate exports can be continues until 2023. "PTFI will work with the Indonesian government to continue exports as needed until the smelter is fully operational," said Richard C. Adkerson, Chairman and Chief Executive Officer of Freeport-McMoRan Inc. Meanwhile, work on PTFI's second copper concentrate smelter in Gresik has reached 51.7 percent earlier this year. PTFI targets the construction of the smelter to be completed in December 2023.
