Indonesia and Freeport-McMoRan Inc reached on August an agreement that lets the US miner continue operating its giant Grasberg copper and gold mine, though crucial details on a planned 51 per cent divestment and new taxes remain unresolved.
Still, by agreeing to the majority divestment, Freeport is giving what it calls a "major concession" to the Indonesian government to move closer to fully resolving the dispute over Grasberg, the world's second-biggest copper mine.
The agreement also reduces the risk of another stoppage to copper concentrate exports from Grasberg. Global prices for the metal jumped earlier this year when negotiations soured and exports were halted.
Freeport can "immediately apply" for a 10-year permit extension to mine at Grasberg beyond 2021, said Indonesian Energy and Mineral Resources Minister Ignasius Jonan, and a second extension could be proposed before 2031.
Source: The Strait Times
