Freeport Expeted to Divest 51 Percent of Shares to Indonesia Before 2021

The copper and gold mining firm PT Freeport Indonesia will divest 51 percent of its shares to Indonesia before its contract ends in 2021.

Jakarta, 10 Rajab 1438/07 April 2017 (MINA) – Coordinating Minister for Maritime Affairs Luhut Binsar Panjaitan has expressed hope that copper and gold mining firm PT Freeport Indonesia will divest 51 percent of its shares to Indonesia before its contract ends in 2021.

The subsidiary of US-based Freeport McMoRan has agreed to divest up to 51 percent of its shares to Indonesia, Luhut said after a meeting on the development of the peoples economy and maritime affairs at the Luhur Al-Tsaqafah Islamic boarding school in South Jakarta on Thursday.

Also Read: J.P. Morgan Reverses Course on Indonesia Stocks

Freeport agreed to the divestment proposal, realizing that the mining ground belongs to Indonesia, he stated.

“It is true that (Freeport) appears (to agree to the divestment proposal). How cannot it agree to it as the assets belong to the Indonesian nation,” he noted.

The Indonesian government has agreed to grant a provisional mining permit to Freeport to resume the export of concentrates for 8 months, pending the result of the second round of negotiations between the two sides.

During the period of time, both sides will continue their negotiations on several issues including provisions on investment stability, continuation of Freeports operations, and divestment of Freeport shares to Indonesia.

Also Read: Rupiah Exchange Rate to Reach Rp13,600 in 2018: INDEF

The negotiations will last for 8 months starting from Feb 10 this year.

The Indonesian team of negotiators comprises the Energy and Mineral Resources Ministry, the Fiscal Policy Board, the Investment Coordinating Board, the Attorney Generals Office, the Home Affairs Ministry, and Papua provincial government. (T/RS5/RS1)

Mi’raj Islamic News Agency (MINA)