Freeport Obtained Copper Export Permit for Indonesian Operations

SEATTLE (Scrap Monster): Freeport- the leading American mining firm announced that it has secured license to ship copper concentrate from its Indonesian operation. The license will be valid till May next year. At the same time, it has urged the government to revisit on its new export duty rules.

In a Securities Exchanges filing by the company, it noted that the export license was granted on 24^th July this year, allowing exports of 1.7 million metric tonnes of copper concentrates. Earlier in June, the Indonesian government had imposed ban on raw mineral exports, in order to boost investments in local metals processing industry, while allowing a few companies to continue exports so as to provide time to complete construction of local smelters.

However, the administration imposed fresh duties on exports by these companies. Freeport has decided to contest this decision.

In accordance with the special mining license issued to it in 2018, the exports will be exempted from duties, upon 50% completion of smelter. In March this year, the Indonesian government had certified that construction of Freeport’s Manyar smelter surpassed 50%, following which it had eliminated duties on exports. The new regulation by the Finance Ministry noted that copper concentrate exports would be subject to 5% and 10% duties, which the company plans to contest.