Freeport Indonesia is unwilling to alter the points in the contract of work (COW) to adapt to special mining license (IUPK). Negotiations have come to a deadlock, despite the deadline. The Arizona-based mining giant has stopped exporting its concentrate.

Gains and Losses

If negotiations reach a deadlock, Freeport must reduce production by 60 percent due to the ban on exports. One concern is that a halt in exports will badly affect the local econo