Indonesia gives Freeport temporary license to resume exports

[JAKARTA] Indonesia's government issued a temporary license to Freeport-McMoRan Inc's local unit that will allow the miner to resume copper concentrate exports from its Grasberg mine after almost a three-month gap.

The license will be valid for a period of eight months and the government will continue talks with Freeport on the financial stability pact, Teguh Pamudji, secretary-general at Indonesia's Energy and Mineral Resources Ministry, told reporters in Jakarta on Tuesday.

PT Freeport Indonesia expects to resume exports soon and will continue discussions with the government on other issues, spokesman Riza Pratama, said in a text message before the announcement.

The truce might allow Freeport to operate Grasberg mine at its full capacity and resume concentrate exports. Freeport had earlier vowed to hold out for investment safeguards before agreeing to convert its Contract of Work into a special license, or IUPK, that would have allowed the miner to resume shipments.

The miner currently operates the mine at about 40 per cent to feed a smelter in Gresik on Java island.

Under new rules announced in January, Indonesia's government said companies that want to export semi-processed metals including copper concentrate must convert their contract of work to a special mining license, build smelters and add local investors.

BLOOMBERG