JAKARTA. Two representatives from gold and copper miner PT Freeport Indonesia visited on Wednesday the Energy and Mineral Resources Ministry as part of the company’s efforts to find a solution to its dispute with the government in connection to the issue of contract conversion.
“We discussed [the issues] to find the best solution in the mutual interest of all parties,” said Tony Wenas in Jakarta.
Both Tony and ministry officials, however, declined to reveal the details of the meeting. “About the substance, [the discussion] has not finished yet. We will reveal it all at the right time,” said Tony as reported by tribunnews.com.
Freeport has refused to accept the demand from the government that it must convert its contract of work (CoW) into a special mining license (IUPK). The company argues that an IUPK would effectively annul its CoW signed in 1991.
Freeport says it does not want to give up the rights listed in its present CoW, including the protections to its long-term investments.
Under the government’s new regulations, Freeport is required to divest up to 51 percent of its shares gradually and to develop smelters.
Both parties have expressed their readiness to negotiate their differences.