JAKARTA (Indonesia Today) – The government of Indonesia will renegotiate working contract with Giant mining company PT Freeport Indonesia in which the gold royalty will be lifted to 10% from current 1%, Bisnis Indonesia reported this morning.
Rudi Rubiandini, vice minister of energy and mineral resources, said the negotiation might take months or years as Freeport might not be easy to agrren on new contract.
He added the negotiation can not also be accelerate through government to government approach.
The government of Indonesia had in January 10, 2012 formed a team for evaluating the working contract and coal mining contract (PKP2B) based on Presidential Decree No.3 Year 2012.
Currently, Freeport also pays 3.5% royalty for copper. According to Government Regulation (PP) No9/2012, gold royalty was set for 3.75% and 4% royalty for copper. (hans@theindonesiatoday.com)