Welcoming the Transition to Underground Mining in 2020, Arifin: Empower Local HR Potential

MINISTRY OF ENERGY AND MINERAL RESOURCES

PRESS RELEASE

NUMBER: 711.Pers/04/SJI/2019

Date: 22 December 2019

Welcoming the Transition to Underground Mining in 2020, Arifin: Empower Local HR Potential

Minister of Energy and Mineral Resources (EMR) Arifin Tasrif expressed a special message to PT Freeport Indonesia (PTFI) about the transition from open-pit mining at Grasberg to underground mining. Arifin reminded PTFI to prioritize native Papuan people in carrying out its underground mining activities.

"This region has a gigantic potential of mineral resource. We have to use this. I'd be content if much of this work is done by native Papuan. Freeport's management should give special attention to continuously foster and improve the existing Human Resource (HR)," said Arifin when he visited Grasberg Mine, Saturday (21/12).

The government, continued Arifin, is discussing with PFTI's management about HR development. "We have (mining) polytecnic program. This should facilitate local HR who will later become the reliable potential of PTFI's mining industry. We must develop these potential to create harmony with Papuan communities. This is a government's obsession which is supported by the laws," he explained.

Based on data available until 2019, the direct employees of PT Freeport Indonesia are 6,943 people, made up of 152 foreigners and 6,791 Indonesians.

Meanwhile, Minister Arifin also highlighted PTFI's production process which will later be conducted in underground mines. "Relating to the continuity of copper mining carried out by PTFI, please find fast track solutions and researches to reduce any risks that can prevent production," said Arifin.

The biggest challenge in underground mining is separating water from mineral during the mining process (wet max). "I believe in PTFI capability because the company has been in the mining industry for a long time," Arifin explained.

As publicly known, between 2020 and 2023 underground mining is planned to replace the Grasberg open pit mining, and the mining will be carried out in DOZ, Big Gossan, DMLZ, and Grasberg Block Cave. The planned volume of underground mining is 96 thousand ton/day in 2020, 160 thousand ton/day in 2021, 216 thousand ton/day in 2022, and 217 thousand ton/day in 2023.

Currently, PT Freeport Indonesia has 6 blocs/prospects with mine volume of 2,756,729 kilo ton, and average content as follows: Cu 0.67%; Au 0.59 gr/ton; and Ag 3.51 gr/ton, while reserve amount of 1,869,083 kilo ton with average content of Cu 1.03%; Au 0.79 gr/ton, and Ag 4.52 gr/ton. (IY)

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