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Freeport won’t reach for arbitration option

Friday, 07 April 2017 | Sanny Cicilia

JAKARTA. The government has said PT Freeport Indonesia will not bring it to the international arbitration tribunal as both parties are in the process of negotiation to seek solutions to their differences.

"No, they will not do it," Energy and Mineral Resources Ministry's mineral and coal director general Bambang Gatot Ariyono told The Jakarta Post in Jakarta on Thursday (6/4).

Bambang’s statement was confirmed by Freeport McMoRan Inc. chief executive officer Richard Adkerson, who said, as reported by Bloomberg, that “the arbitration wouldn’t happen if talks are proceeding well”.

Bambang said the government had issued a special mining license (IUPK) to Freeport, which automatically allowed the company to export concentrates.

However, he added, Freeport had eight months to adapt itself to the IUPK requirements, if not, it would have to revert back to a contract of work (CoW).

"It is not a 'temporary contract', we’ve already issued the IUPK for Freeport, but it has eight months to adapt, if it fails it must to go back to a CoW and cannot export concentrates," he said.

Energy and Mineral Resources Minister Ignasius Jonan said if Freeport chose to revert to a CoW, it would still be allowed to sell to the domestic market. "It will be allowed to revert to the CoW, but with consequences of not exporting anymore," he said. (bbn)

Source : The Jakarta Post

Reporter: Sanny Cicilia
Editor: Sanny Cicilia