Freeport-McMoRan Updates Status of Indonesia Operations
Following more than five years of discussions, PT Freeport Indonesia’s (PT-FI) and the government have failed to reach an agreement on concentrate exports and other matters related to its contract of work (COW).
Indonesian government regulations passed in January and February require that PT-FI terminate its COW and convert to a special license (IUPK) in order to export its concentrate production. PT-FI advised the government that attempts to enforce this regulation on PT-FI violates its COW and that it is unwilling to terminate its COW unless replaced by a mutually acceptable form of agreement providing fiscal and legal assurances to support its long-term investment plans in Indonesia.
Permits Face Cancellation in the Philippines
Philippines Environment and Natural Resources Secretary Gina Lopez announced on February 14 that 75 mineral production sharing agreements (MPSA) for mining sites that are within watershed areas face cancellation.
Lopez said show cause orders have been issued to mining companies to allow them to explain why their MPSAs should not be canceled for threatening watersheds. MPSA holders have seven days to reply, she added.