From The Jakarta Globe
March 4, 2015
On Wednesday an official at the Energy and Mineral Resources Ministry said The government plans to revise a regulation to allow miners to submit their request to renew contracts 10-years before the contracts’ expiry date.
The government will revise the existing regulation, which says miners can only submit their request to renew existing contracts before the contracts expire at the earliest 2 years and at the latest six months before the contracts expire, Said Didu, a member of the national smelter development team at the Energy and Mineral Resources Ministry..
On Freeport, Didu particularly said that Freeport needs assurance over their operations after their contract of works expire in 2021. Didu said business certainty is important before making a huge investment. The American mining giant has already agreed to a $2.3 billion copper smelter in East Java as it prepares to spend $15 billion for the expansion of its mining operations this year from open pit into underground mining.
Investment for underground mining typically starts 10 years before production, said Didu. However, he said it is not realistic for Freeport to wait until its contract is two years away from expiration.
More detailed story, please visit here
March 4, 2015
On Wednesday an official at the Energy and Mineral Resources Ministry said The government plans to revise a regulation to allow miners to submit their request to renew contracts 10-years before the contracts’ expiry date.
The government will revise the existing regulation, which says miners can only submit their request to renew existing contracts before the contracts expire at the earliest 2 years and at the latest six months before the contracts expire, Said Didu, a member of the national smelter development team at the Energy and Mineral Resources Ministry..
On Freeport, Didu particularly said that Freeport needs assurance over their operations after their contract of works expire in 2021. Didu said business certainty is important before making a huge investment. The American mining giant has already agreed to a $2.3 billion copper smelter in East Java as it prepares to spend $15 billion for the expansion of its mining operations this year from open pit into underground mining.
Investment for underground mining typically starts 10 years before production, said Didu. However, he said it is not realistic for Freeport to wait until its contract is two years away from expiration.
More detailed story, please visit here
Comments
Post a Comment