Indonesia halts export license for U.S.-based mining firm Freeport McMoran

Indonesia trade ministry held back the issuance of export license for the United States-based mining firm Freeport McMoran following the latter's disagreement with the nation's mineral and energy ministry (ESDM) upon operation license.

Indonesian Trade Minister Engartiasto Lukita said that his ministry has yet to process the official export license request submitted by Freeport related to the ongoing Freeport's operation license dispute.

"We would issue the export license for Freeport after receiving recommendation from the mineral and energy ministry," the trade minister told a press conference here on Tuesday.

Freeport and ESDM have yet to reach an agreement upon Indonesian government's obligation for foreign mining firms operating in the country to alter their operation licenses into the latest scheme of IUPK.

The IUPK, drafted by the present government, obliges those firms to abide by new legal and tax aspects demanded by government.

Indonesia would only issue export licenses for those firms after they altered their contracts into IUPK.

Freeport, which processes gold, copper and bronze ores from its mills located in Indonesia's mineral-rich province of Papua, demands the continuance of the existing working contract (KK) it established with previous government that requires annual tax at the same amount until the expiration of the contract.

Freeport has planned to bring the dispute to international arbitration should an agreement is not reached within 120 days after the meeting of its executives with Indonesian senior officials last Friday. Endit