Indonesia asks Freeport to submit a land use request
Indonesia's forestry ministry has asked the miner to submit a request for permission to use land in a protected forest area
Reuters in MiningWeb | 23 Feb 2010
Indonesia's forestry ministry has asked Freeport McMoRan Copper & Gold Inc (FCX.N) to submit a request to use land in a protected forest area, a ministry official said on Tuesday.
In 2004, Indonesia allowed 13 mining firms, including Freeport, to continue mining operations in Indonesia after the introduction of a law in 1999 which banned open-pit mining in forested areas.
"We have sent a notice letter to Freeport about the rule that they have to submit a request because their operation is located in a protected area," said Masyhud, forestry ministry spokesman.
He said the ministry had not discussed stopping operations as that was under the authority of the mines and energy ministry.
Freeport officials could not be reached for comment.
Freeport owns 90.64 percent of PT Freeport Indonesia, which operates the huge Grasberg copper and gold mine in Papua province, while the Indonesian government owns the remainder.
Grasberg, which has the world's largest recoverable reserves of copper and the largest gold reserve, accounts for nearly 40 percent of Freeport's total copper reserves of 93 billion pounds, according to the firm's website.
M.S. Marpaung, director of technical and environment at the mines ministry, told Reuters via telephone text message that Freeport was currently processing the permit.
Earlier this month, Indonesian police temporarily shut the Jorong coal mine in Kalimantan operated by a unit of Thailand's top coal miner Banpu PCL (BANP.BK) over a land permiting problem.
Banpu said the closure would only have a slight impact on production at its Indonesian unit Indo Tambangraya Mega Tbk (ITMG.JK).
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