https://www.miningweekly.com
Construction|Copper|Export|Mining|Products
Construction|Copper|Export|Mining|Products
construction|copper|export|mining|products

Freeport warns copper export ban could cost Indonesia $2bn in lost revenue

A 2023 photo from the Gresik smelter project. The smelter will not be operating at full capacity until June.

A 2023 photo from the Gresik smelter project. The smelter will not be operating at full capacity until June.

28th March 2024

By: Reuters

  

Font size: - +

JAKARTA - Copper miner Freeport Indonesia has warned the Indonesian government that banning exports of copper concentrate in June could lead to a loss of $2-billion in revenues for Jakarta, a company official said on Thursday.

Indonesia's export ban takes effect from June in an effort to force miners to invest in domestic smelting facilities, thus adding value to their products, boosting earnings from exports.

Freeport Indonesia, controlled by mining giant Freeport McMoran, though the Indonesian government is a majority shareholder, has called for the ban to be relaxed as its Gresik smelter would not be operating at full capacity by June.

"If we can't export, state revenues will drop by around $2-billion, based on current prices," media quoted CEO Tony Wenas as saying in remarks confirmed by a company spokesperson.

The comments followed a meeting with President Joko Widodo, at which he was accompanied by Freeport McMoran's chairman Richard Adkerson and incoming chief executive Kathleen L. Quirk. 

Wenas reiterated that construction of the Gresik smelter would be complete by May and start operating the following month, reaching full capacity later in 2024.

A spokesperson for Indonesia's mining ministry declined to comment. The president's office did not immediately respond to a Reuters' request for comment.

Wenas has previously said Freeport Indonesia would have to cut ore production by 40% this year if the government did not delay the ban.

On Wednesday, Indonesian copper miner Amman Mineral Internasional said it was also negotiating with the government to relax the ban since its smelter would not be ready by May, arguing that the government earns tax revenues from Amman as well as Freeport.

Freeport also raised the matter of extending its mining permit during the meeting, Wenas said.

Widodo and Adkerson met last November to discuss a 10% increase in Indonesia's ownership of Freeport Indonesia and a 20-year extension of its mining permit beyond the current expiry date of 2041.

Edited by Reuters

Comments

Showroom

John Thompson
John Thompson

John Thompson, the leader in energy and environmental solutions through value engineering and innovation, provides the following: design, engineer,...

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.137 0.171s - 94pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: