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FREEPORT : NEGATIVE CASH FLOW IN QUARTER I/2014 IS NOT SUFFICIENT TO PAY DIVIDEND

A location f Freeport’s mining area (Jubi)
Jayapura, 18/4 (Jubi) – The Government of Indonesia continues pursuing PT Freeport Indonesia to pay the overdue dividend while the company reportedly acknowledged their business profit has not been sufficient to pay such a debt.

“I knew Freeport had 6 trillion profit, that’s why we keep asking them to pay,” said the Minister of Mineral Resources Dahlan Iskan after the meeting at Re-Indo Office in Jakarta on Thurday (17/4) as reported in merdeka.com.

He further admitted PT Freeport Indonesia based on the Shareholders General Meeting decided not paying dividend to the government because the government only holds 9.3% of total shares.

“The Shareholders General Meeting decided not paying dividend to the government, but the State Company didn’t agree. However, they still kept saying they couldn’t pay because they need to cover other expenditures. The voting was conducted then, and the result is not to pay. 9.3 % is meaningless, therefore we are struggling for it,” the Minister said.

But last year’s financial statement was showing the PT Freeport to benefit through the increased sales volume of gold and copper to 6.4 % or USD 4.34 billion of previous USD 4.09 billion. This fact has made the Ministry of Mineral Resources pursuing dividend; the government will ask the interim dividend.

The Vice President Corporate Communication of PTFI, Daisy Primayanti said to tabloidjubi.com the company was not able to pay dividend to the company’s shareholders including the shareholders of parent company and the Government of Indonesia partly because of the interruption of the operations that was occurred for almost two months.

“Due to the interruption of the operations, the sales volume of cooper and gold were reduced. The drop of global commodity price in 2013 also affected the company,” she said by phone (18/4).

She further said PTFI is currently using its cash flow to maintain its current productivities and large investment of Underground Mining.

“The company’s cash flow of Quarter 1/2014 is negative. It’s not sufficient to pay dividend,” she said.

Earlier, she said to Jubi that PTFI has used the cash flow to USD 1 Billion investment to develop the underground mining. The underground mining project has been planning for 2017 and would later become the basis of mining activities of PTFI.

“The underground mining project was estimated to spend about USD 15 billion during the remaining mine life,” she said. (Jubi/Victor Mambor/rom)

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