JAKARTA, March 28 (Reuters) - Copper miner Freeport
Indonesia has warned the Indonesian government that banning
exports of copper concentrate in June could lead to a loss of $2
billion in revenues for Jakarta, a company official said on
Thursday.
Indonesia's export ban takes effect from June in an effort
to force miners to invest in domestic smelting facilities, thus
adding value to their products, boosting earnings from exports.
Freeport Indonesia, controlled by mining giant Freeport
McMoran ( FCX ), though the Indonesian government is a majority
shareholder, has called for the ban to be relaxed as its Gresik
smelter would not be operating at full capacity by June.
"If we can't export, state revenues will drop by around $2
billion, based on current prices," media quoted Chief Executive
Tony Wenas as saying in remarks confirmed by a company
spokesperson.
The comments followed a meeting with President Joko Widodo,
at which he was accompanied by Freeport McMoran's ( FCX ) chairman
Richard Adkerson and incoming chief executive Kathleen L. Quirk.
Wenas reiterated that construction of the Gresik smelter
would be complete by May and start operating the following
month, reaching full capacity later in 2024.
A spokesperson for Indonesia's mining ministry declined to
comment. The president's office did not immediately respond to a
Reuters' request for comment.
Wenas has previously said Freeport Indonesia would have to
cut ore production by 40% this year if the government did not
delay the ban.
On Wednesday, Indonesian copper miner Amman Mineral
Internasional said it was also negotiating with the government
to relax the ban since its smelter would not be ready by May,
arguing that the government earns tax revenues from Amman as
well as Freeport.
Freeport also raised the matter of extending its mining
permit during the meeting, Wenas said.
Widodo and Adkerson met last November to discuss a 10%
increase in Indonesia's ownership of Freeport Indonesia and a
20-year extension of its mining permit beyond the current expiry
date of 2041.