Jakarta. The CEO of Freeport Indonesia voiced his support on Tuesday for the potential removal of government regulations that limit the duration of mining concessions.

Tony Wenas said several countries impose no time restrictions on mining activities, provided the concession holders follow responsible and sustainable mining practices.

“A mining permit should be valid until the resources are depleted, particularly in an ecosystem where both upstream and downstream activities are fully integrated,” Tony said during a discussion at the BNI Investor Daily Summit in Jakarta.

“In several countries, there are no time limits on mining permits as long as the output remains necessary. However, it is crucial that miners strictly adhere to environmental preservation standards,” he added.

His comments were in response to remarks made by Indonesian Mining Association Chairman Rachmat Makkasau, who advocated for a review of the regulation that imposes time limits on mining operations, as a way to attract new investments in the sector.

Tony noted that Indonesia’s mining industry is experiencing a surge in momentum due to rising mineral prices, increasing demand, and dwindling global supplies.

“The timing is perfect for Indonesia to solidify its position as a major producer of copper, bauxite, and, of course, nickel,” Tony said during the discussion titled "The Future of Mining: Driving Efficiency and Sustainability through Technology."

Last month, Freeport Indonesia launched the world’s largest single-line copper smelter in East Java, in a ceremony attended by President Joko Widodo.

The smelter has an input capacity of 1.7 million tons of copper concentrate and is expected to produce approximately 650,000 tons of copper cathodes annually, along with 50 tons of gold and 210 tons of silver.

The president noted that Freeport has invested Rp 56 trillion ($3.68 billion) in the new smelter, which marks a significant milestone for the company.

Freeport Indonesia operates underground mines in Timika, Papua, where it produces copper and gold.