Mining Minister Estimates Freeport Indonesia Worth $8 Billion

The Ministry of State Owned-Enterprises, tipped to oversee an acquisition of a majority stake in the local unit of Freeport-McMoRan, has "no clear structure" yet for the deal. (Reuters Photo)

By : Wilda Asmarini | on 4:47 PM October 12, 2017
Category : Business, Commodities

Jakarta. Indonesia's mining minister said on Monday he estimates the local unit of Freeport-McMoRan Inc , operator of the giant Grasberg copper mine, to be worth $8 billion, amid talks over the divestment of a majority stake in the unit.

The valuation was based on an assumption of Freeport's market capitalisation of $20.74 billion, and the Indonesian unit contributing "a maximum" of 40 percent to the profits of the Phoenix, Arizona-based parent company, Energy and Mineral Resources Minister Ignasius Jonan told a parliament hearing.

Jonan said a "special mining permit" that was allocated to Freeport Indonesia earlier this year had been extended for the next three months.