Indonesia gains majority ownership of giant Freeport mine

Section:

By Niniek Karmini
Associated Press
via Yahoo News
Friday, December 21, 2018

JAKARTA, Indonesia -- Indonesia finalized the transfer of majority control over a giant gold and copper mine from U.S. company Freeport-McMoRan, the government said today, in a long-awaited deal that boosts the president's re-election campaign.

The Phoenix, Arizona-based Freeport McMoRan Copper & Gold Inc. initially owned about 90 percent of the Grasberg mine since it began operating in Indonesia's easternmost province of Papua in 1973. The rest has been owned by the Indonesian government.

... Dispatch continues below ...



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"Today is a historic moment," President Joko "Jokowi" Widodo told a news conference at the presidential palace in the capital, Jakarta, attended by related ministers of his cabinet and Freeport-McMoRan chief executive Richard Adkerson.

"We will use this majority ownership entirely for people's prosperity. Our income in tax, revenues, and royalties will be bigger and better," Widodo said.

The landmark deal worth $3.85 billion to take over a 51.2 percent stake in PT Freeport Indonesia from the U.S. company was paid by state-owned PT Inalum mining company after environmental and smelting issues were settled, Widodo said. ...

Apart from reduced ownership, Adkerson said the new permit given to Freeport Indonesia, which is valid until 2031, would give the company clarity over its operation in the country up to 2041 as the company could apply for a 10-year extension within five years before it expires. ...

Freeport will also increase its investment in smelting in Indonesia within five years, fulfilling a key demand of the government, which wants the country to get greater value from its mineral resources, and will invest an estimated $14 billion in the mine. ...

... For the remainder of the report:

https://www.yahoo.com/finance/news/indonesia-owns-majority-control-over-...

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