JAKARTA (Indonesia Today) – Boedioro Soetjipto, president director of PT Freeport Indonesia, said the company is ready to pay gold royalty of 3.75% from current 1%.
He however said Freeport and the Government of Indonesia had for more than one year been negotiating some contracts agreements.
Boedioro said 6 issues under negotiation are smelter construction, reduction of mining area, increase of royalty, domestic products utilization, contract extension, and stake divestment.
According to Government Regulation (PP) No9/2012, gold royalty was set for 3.75% and 4% royalty for copper.
Freeport is ready to divest up to 10.64% stake until 2021. It had divested 9.36% stake. Currently Freeport’s gold reserves in Papua reached 67 million ounces, or around 1,899 tons (1 ounce = 28.35 grams). (hans@theindonesiatoday.com)