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Indonesia prepares company to manage Freeport
Jakarta Post - February 27, 2017
"We can manage [Freeport]. We have Inalum. It is up to the state-owned enterprises ministry, but we are ready," said Maritime Coordinating Minister Luhut Binsar Panjaitan in Jakarta on Monday as reported by tempo.co.
The government will take over of the mining site if it wins in the international arbitration tribunal.
Previously, Freeport McMoRan president and CEO Richard C. Adkerson said the 2009 Mineral and Coal Mining Law stipulated that the CoW signed in 1991 was still valid, but the government had requested that Freeport convert the contract into a special mining license (IUPK).
The company gave the government three months for negotiation and threatened to take the case to the international arbitration if the negotiation fails.
Inalum, a company in Asahan, North Sumatra, is now prepared to lead mining companies in an effort to set up state-owned mining company holding, Luhut said. The minister stressed that the company has the capability to manage Freeport, the world largest copper and gold mining company.
The government's plans to appoint Inalum to manage Freeport were supported by a member of the House of Representatives' energy commission, Gus Irawan Pasaribu, who said the company had good performance in managing the aluminum producer, which was established in cooperation with the Indonesian government and Nippon Asahan Aluminium Co in 1976. (bbn)