Freeport Indonesia may get 1Mt copper concentrate export quota
Copper miner Freeport Indonesia may get an export quota of around 1 million metric tons of copper concentrate, Energy and Mineral Resources Minister Bahlil Lahadalia told reporters on Friday. The government has issued a regulation[1] allowing exports of raw minerals under force majeure conditions, and such a quota will be valid for six months after a recommendation was issued, Bahlil said. Resource-rich Indonesia has imposed an export ban for unprocessed minerals, such as copper and nickel, to promote domestic value-addition.
Freeport has been asking[2] to be allowed to export copper concentrate after it was forced to stop copper cathode production at its new smelter in Gresik, East Java province after a fire broke out at its gas cleaning unit in October. The company's mining operation has been reduced to 40% capacity[3] due to a rising stockpile of copper concentrate, its chief executive said last month, as the domestic market has limited capacity to absorb the concentrate. Its excess concentrate stockpile has the potential to reach 1.3 million tons, CEO Tony Wenas said.
Freeport has sought an export permit from authorities following the new regulation, but the mining ministry has not issued a recommendation yet, senior official Tri Winarno said Friday. Mining ministry recommendation is required for export permit issuance by the Trade Ministry. Freeport Indonesia did not immediately respond to a Reuters request for comment.
(By Bernadette Christina Munthe and Fransiska Nangoy; Editing by John Mair, Rashmi Aich and Lincoln Feast)
References
- ^ issued a regulation (www.mining.com)
- ^ has been asking (www.mining.com)
- ^ reduced to 40% capacity (www.mining.com)