CEO of U.S. company Freeport copper and gold mine in Indonesia Maikemolun subsidiaries Rozik Soetjipto said Wednesday, seven months after experiencing the export tax dispute led to the suspension, the Indonesian subsidiary of copper concentrate output will decline nearly 20 percent this year.
Soetjipto said that despite months into its production, and continued for a joint venture refinery Gresik, East Java shipments, but inventory has reached 140,000 tons, close to the monthly production capacity levels.
Freeport in July signed the agreement with the Indonesian government to end the dispute surrounding the taxation of metal concentrates, the company earlier this month recovery in exports. Soetjipto said copper concentrate production this year is estimated at 1.8 million tons, lower than previously expected 2.2 million tons and exports of about 700,000 tons. “This year, we have made a number of shipments to China, and perhaps will send a group to Spain in the next few days.” He said. He currently can not give a specific timetable to cut 140,000 tons of inventory, the inventory size is only lower than the production capacity of 5,000 tons. “When the operation back to normal, every day we will probably 5,000-6,000 tonnes of ore output.” Soetjipto added.
The Indonesian government in the implementation of new regulations export tax in January aimed at forcing the development of local ore miner processing industry, because the government believes it will have huge mineral resources in Indonesia to bring greater returns. The whole mining industry for the development of downstream industries and the decision to build smelters in doubt, due to the lack of electricity mines are usually located in remote areas and infrastructure. Freeport and the Indonesian government signed a concession fee to cover payments, export taxes and other content smelter construction Memorandum of Understanding, and promised to release additional business in Indonesia 20 percent equity investment, after the two sides reached an agreement to restore exports. The Indonesian government now has the right Freeport Indonesia’s 9.36% stake in the business.