Govt to hike copper export levy after Freeport smelter fire

he government will slap a higher export tax on future copper shipments by PT Freeport Indonesia (PTFI) after a fire late last year halted operations at its new smelter in Gresik, East Java, Energy and Mineral Resources Minister Bahlil Lahadalia said on Wednesday. "We will impose a penalty by raising the export tax [to make it] higher than before," Bahlil told reporters on the sidelines of the Indonesia Economic Summit hosted by the Indonesia Business Council at the Shangri-La hotel in Jakarta. The government would allow the company to resume copper concentrate exports "in stages", but with penalties, Bahlil said, explaining that the definitive rate would be set later this month.

Read also: Freeport 'ready' to export 1.3m tonnes of copper concentrate this year[1] The October fire temporarily halted PTFI's production, forcing the copper and gold miner to suspend copper concentrate exports ever since. Previously, the miner had committed to paying a 7.5 percent export duty on any shipments made under the waiver, while the government has urged the company to accelerate repairs at the US£3 billion Gresik copper smelter, according to United States-based Freeport-McMoRan (FCX), which controls its operations.

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The decision had been made in a limited meeting led by President Prabowo Subianto[3] recently, Bahlil said, with the aim of finding a "win-win solution" to keep operations running and state revenue flowing.

References

1. ^ Freeport 'ready' to export 1.3m tonnes of copper concentrate this year (www.thejakartapost.com)
2. ^ View More Newsletter (www.thejakartapost.com)
3. ^ Prabowo Subianto (www.thejakartapost.com)