PT Freeport Indonesia set up an investment fund of U.S. $ 16-18 billion, or around Rp 144-162 billion for the opening of an underground mine. Underground mine that will replace the open pit mine that has the highest contribution to the production company.

According to President Director of Freeport Rozik B. Soetjipto, investment funds will be used until later in 2021. Infrastructure preparations have been made since 2008.

“Right now mine is open for 75% of total production. But in 2016 its reserves will be exhausted,” he said when visiting the office of AFP on Friday (03/09/2012).

Later, Rozik said, the majority of the production of Freeport will be obtained from the underground mine. During the period 2013-2018, the cost required for the underground mine is quite large, about U.S. $ 9 billion.

“Investment during the period 2013-2018 because it is big enough to build the tunnels and all sorts. It is usually (cost) is greater at the beginning but will be smaller,” he said.

He said most of the funding for these investments will come from loans. The Company is majority owned by the United States (U.S.), it has been approached several prospective lenders.

Some states afford to fund, but have not dared to agree because it is still waiting for the smooth-related projects with the Indonesian government.

“Some are willing, but they must wait for the government first. The project could be continued or not, are you related to contract negotiations,” he explained.

Freeport’s Contract of Work performed by the new government in 1991 will expire in 2021. The Company intends to exercise the right to extend the two-time 10 years.

Thus, if the right extends the contract was made, a new work contract will expire in 2041. Freeport estimates, reserves in the mine area will be available until 2047. Riau People