Gov't to Finalize Freeport Divestment by End of April

Energy Minister Ignasius Jonan on Monday (05/03) said the government wants to finish the divestment process of Freeport Indonesia by the end of April. (Reuters Photo)

By : Sheany | on 10:04 PM March 05, 2018
Category : News, Commodities

Jakarta. Energy and Mineral Resources Minister Ignasius Jonan on Monday (05/03) said the government plans to conclude the divestment process of US mining giant Freeport-McMoRan's subsidiary, Freeport Indonesia, by the end of April.

"President [Joko Widodo] has requested that the divestment process with Freeport-McMoRan be finished before the end of April," Ignasius said during a press conference in Jakarta.

In August, Freeport Indonesia agreed to divest a 51 percent stake in a framework agreement. The mining giant also said it will build copper smelters in Indonesia and pay higher taxes, as part of a deal to extend its contract until 2041.

Freeport's existing contract is set to expire in 2021.

Ignasius said the government will buy the shares at "the most reasonable price" to acquire majority ownership of Freeport Indonesia.

"This includes acquiring the 40 percent participating interest, which we will convert into shares," he said, referring to Australian-British mining giant Rio Tinto's participating interest in Freeport's Grasberg mine contract.

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