Freeport to cut stake in Indonesia mine after gov't pressure

FILE - In this Friday, Nov. 13, 2017, photo, Chief Executive Officer for Freeport-McMoRan Copper and Gold Richard Adkerson addresses the APEC CEO Summit in Singapore. Indonesia is allowing Freeport-McMoRan to continue operating a giant gold and copper mine after the U.S. company agreed Tuesday to relinquish majority ownership of it to the government. (AP Photo/Gemunu Amarasinghe, File)

JAKARTA, Indonesia — Indonesia is allowing Freeport-McMoRan to continue operating a giant gold and copper mine after the U.S. company agreed Tuesday to relinquish majority ownership of it to the government.

Indonesia's Energy and Minerals Minister Ignasius Jonan told a news conference that Phoenix, Arizona-based Freeport-McMoRan Copper & Gold Inc. could operate the mine in easternmost Papua until 2041 under a new arrangement with the government.

Details are still to be worked out, but it paves the way to end a lengthy dispute between Freeport and Indonesia that reduced the Grasberg mine's production in recent months.

The mine in Papua, where a separatist movement simmers, has been the target of protests by Papuans who resent the region's mineral wealth being exploited by the U.S. and Indonesia.

The news conference in Jakarta was also attended by Freeport-McMoRan's CEO Richard Adkerson and Indonesia's Minister of Finance Sri Mulyani Indrawati.

Jonan said the U.S. company's subsidiary PT Freeport Indonesia agreed to reduce its ownership of the mine and convert its original agreement signed with the government of former dictator Suharto in 1991 to a special mining license. The original agreement expires in 2021.

Freeport also agreed to increase its investment in smelting in Indonesia, fulfilling a key demand of the government which wants the country to get greater value from its mineral resources.

Grab builds out war chest in a fight for...

Jul 24, 2017

Grab gets another $2 billion in financing, revealing the intense competition among car-share...

At least 7 dead, 12 missing in boat accident in...

Jul 25, 2017

An official says a speedboat carrying 48 people has capsized in central Indonesia, killing seven...

Villagers race to save Bali cows from volcanic...

Sep 30, 2017

Bali's gently lowing cows, prized for their hardiness and doe-like temperament, won't become...

Bali volcano ash drifts 4.7 miles high, airport...

Nov 29, 2017

An erupting volcano with a deadly history on Indonesia's Bali island has spread drifting ash 7,600...

AP Exclusive: Pulp giant tied to companies...

Dec 20, 2017

AP Exclusive: Indonesian paper giant Sinarmas is linked to opaque network of shell companies that...

Penggerak pasaran mengikut TradingView

About Us

Duniaga is Malaysia’s top local source for business news and information where people head to stay connected with the business news. We give daily in-depth analysis on the business happenings in the country.

Contact us: sales[at]duniaga.com

Subscribe Now!