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2017, September 04 - 10 --- Tempo

The willingness of Freeport-McMoRan Copper & Gold Inc. to relinquish 51 percent of the shares in PT Freeport Indonesia to the Indonesian government should not fill us with unbounded joy. There is still much work to do: from negotiating a price, finding the funds and deciding on the tax regulations to preventing rent-seekers from joining the divestment scheme. If it is not managed carefully, instead of bringing benefits to the people, the divestment could empty the government's coffers or just enrich a small number of people. The ownership of the world?s largest gold and copper mine in Papua has long been in dispute. The latest drama began in January, when the government banned Freeport from exporting copper concentrate. In line with Government Regulation No. 1/2007 on the Mining of Minerals and Coal, the mining company is not allowed to export copper concentrate without building a smelter to refine it. This ban led to Freeport-McMoRan CEO Richard Adkerson threatening to take the government to arbitration for breaking the 1991 work contract.

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