Reuters An aerial view shows the site of the Grassberg Mine, operated by the U.S.-based Freeport-McMoran Copper & Gold in Indonesias Papua province November 4, 2010. Freeport, which operates mines in North and South America, Africa and Indonesia, said third-quarter net earning were 1.2 billion, or 2.49 per share, up from 925 million, or 2.07 per share, a year earlier. Analysts, on avarage, were expecting 2.25 per share, according to Thomson Reuters. Picture taken November 4, 2010.
JAKARTA, The State Audit Board (BPK) plans to audit payment of royalties by gold and copper mining company PT Freeport Indonesia to the state.
The audit scheduled for the second semester of 2011 is part of the audit of non-tax state revenues, BPK member Ali Masykur Musa said after presenting the results of audit of the Energy and Mineral Resources Ministry's financial statement to Minister Darwin Saleh here on Tuesday.
"We will audit non-tax state revenues including royalties from Freeport," he said.
He said the audit of royalties from Freeport will become one of the board's priorities. The government has so far received royalties as much as 1 percent of the company's gold sales, he said.
Besides gold, Freeport also produces silver and copper. The audit is scheduled for completion in December 2011,Arif Sanjaya, acting head of the board's audit section IV B overseeing energy, mineral resources and environmental affairs, said.
"We will present the results of the audit (to the relevant party) in February or March 2012," he said.
Energy and Mineral Resources Minister Darwin Saleh said the government will always try to raise state revenues from royalties while at the same time respecting contracts with companies. Ali further said the board managed to save Rp426 billion in state funds from the audit of state revenues from payment of royalties by coal mining companies last year.
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