Freeport Targets to Export 900 Thousand Tons of Concentrate by the End of 2024
25 Jun 2024, 12:05 PM
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PT Freeport Indonesia (PTFI) revealed that the company is targeting an export volume of 900 thousand tons of copper concentrate and anode slime until December 31, 2024, even though the permit actually expired on May 31, 2024.The government itself has issued a regulation, one of which grants an extension of the raw mineral export permit until the end of 2024, including to PTFI. This is stipulated in the Minister of Energy and Mineral Resources (ESDM) Regulation Number 6 of 2024 concerning the Completion of the Construction of Domestic Metal Mineral Refining Facilities."The export target is around 900 thousand tons by December (2024)," said PTFI President Director Tony Wenas, when met after the MINDialogue CNBC Indonesia event, Thursday (20/6/2024).However, he mentioned that even though the regulation has been formalized by the government, the company has claimed not yet received the export permit extension."The regulation (is there), but the export permit is not yet. It is still in the finalization stage," he added.It should be noted that the government approved the extension of the export permit for copper concentrate and anode slime for PT Freeport Indonesia and other copper companies until December 31, 2024.This is stipulated in the latest regulation, namely the Minister of Energy and Mineral Resources (ESDM) Regulation Number 6 of 2024 concerning the Completion of the Construction of Domestic Metal Mineral Refining Facilities.Established by Minister of Energy and Mineral Resources Arifin Tasrif on May 29, 2024, this regulation became effective on June 1, 2024."Considering that the construction of domestic metal mineral refining facilities by mining business license holders and special mining business license holders at the production operation stage for copper, iron, lead, and zinc commodities, which have entered the commissioning stage, requires additional time to produce optimally and contribute to economic growth," reads the consideration point of Minister of Energy and Mineral Resources Regulation No. 6 of 2024, quoted on Friday (31/5/2024).As is known, based on the current export permit, PT Freeport Indonesia and other copper, iron, lead, or zinc companies, including PT Amman Mineral Nusa Tenggara Tbk (AMNT), were granted export permits only until May 31, 2024.With the issuance of Minister of Energy and Mineral Resources Regulation No. 6 of 2024, the government has granted an extension of the concentrate export permit until December 31, 2024.Nevertheless, companies must also pay export duties according to applicable regulations, and the processing and refining facility project must be at the commissioning stage by the end of May 31, 2024, as stated in Article 3 paragraph (2).The complete regulation is as follows:Article 2:(1) The scope of this Ministerial Regulation regulates the completion of the construction of domestic metal mineral refining facilities by holders of mining business permits at the production operation stage for copper, iron, lead, or zinc metal mineral commodities that have entered the commissioning stage.(2) In entering the commissioning stage as referred to in paragraph (1), holders of mining business permits at the production operation stage for copper, iron, lead, or zinc metal mineral commodities who previously received export recommendations based on Minister of Energy and Mineral Resources Regulation Number 7 of 2023 concerning the Continuation of the Construction of Domestic Metal Mineral Refining Facilities are given the opportunity to sell processed products abroad until December 31, 2024.Article 3:(1) Holders of mining business permits at the production operation stage for copper, iron, lead, or zinc metal mineral commodities who are building their own refining facilities or collaborating to build refining facilities and have entered the commissioning stage can sell processed products abroad in certain quantities using the Harmonized System (HS) codes according to applicable regulations until December 31, 2024.(2) The sale of processed products abroad by holders of mining business permits at the production operation stage for copper, iron, lead, or zinc metal mineral commodities as referred to in paragraph (1) is conducted under the following conditions: a. have produced processed products; b. the physical progress of the refining facility construction has entered the commissioning stage by May 31, 2024, at the latest; c. pay export duties according to applicable regulations; and d. meet the minimum processing limits according to applicable regulations.(3) Collaboration to build refining facilities as referred to in paragraph (1) includes direct share ownership in business entities holding processing and/or refining business permits.Article 4:(1) Holders of: a. special mining business permits at the production operation stage for copper metal mineral commodities; or b. processing and/or refining business permits issued by the minister responsible for industrial affairs who have produced by-products or residues from copper metal mineral refining in the form of anode slime, can sell anode slime abroad in certain quantities using the Harmonized System (HS) codes according to applicable regulations until December 31, 2024.(2) The sale of anode slime abroad as referred to in paragraph (1) is conducted under the following conditions: a. building their own advanced refining facilities; or b. collaborating to refine with holders of mining business permits at the production operation stage for metal minerals and/or holders of special mining business permits at the production operation stage for metal minerals.Article 5:(1) The sale of processed products abroad as referred to in Article 3 and the sale of anode slime abroad as referred to in Article 4 is carried out after obtaining export approval from the director general responsible for foreign trade according to applicable regulations.(2) Before obtaining export approval as referred to in paragraph (1), holders of mining business permits at the production operation stage for metal minerals or holders of special mining business permits at the production operation stage for metal minerals must obtain recommendations from the Director General on behalf of the Minister.(3) The recommendation referred to in paragraph (2) is given for a period until December 31, 2024.
