ESDM has not approved Freeport and Newmont plan

JAKARTA. Ministry of Energy and Mineral Resources (ESDM) has not approved the 2014 work plan and budget (RKAB) proposed by PT Freeport Indonesia and PT Newmont Nusa Tenggara. That's because the two companies had not submitted the proposal development processing and refining facilities (smelters) in the RKAB.

Dede I. Suhendra , Director of Mineral Development and the Ministry of Energy and Mineral Resources , said , Freeport and Newmont must include RKAB smelter development plan to ensure that both  company's copper processing facility will be established in 2017 . "If they build it themselves, where is the road map. If through cooperation with third parties, where is the details, “ Dede said, last weekend .

Freeport and Newmont are two companies holding contracts of work (KK) who has received permission from the Indonesian government to export minerals processed without purification or concentrates, up to three years. But before giving export licenses, the government set a number of requirements that must be met by both the foreign companies.

Among them, the two companies must obtain export recommendation of the Ministry of Energy and Mineral Resources and holds a certificate from the Ministry of Commerce registered exporters. To get a recommendation, Freeport and Newmont must submit mineral reserves data, showed evidence of smelter construction plans, as well as meet the requirements of the environmental management.