Indonesia, Freeport Reach Agreement on 51% Divestment

Annisa ayu artanti    •    29 Agustus 2017 14:43 WIB
Indonesia, Freeport Reach Agreement on 51% Divestment
The negotiation process has been conducted since early 2017 (Photo:MTVN/Annisa)

Metrotvnews,com, Jakarta: The Indonesian government and the United States mining company Freeport McMoran have agreed four issues after months of negotiations.

"We started the process early this year.We intensified the process three or four months ago," Indonesia's Energy and Mineral Resources Minister Ignasius Jonan said during a press conference on Tuesday, August 29, 2017.

Freeport will divest a 51 percent stake in its Indonesian unit to local parties in the near future. In exchange, it will receive an extension on its permit to operate copper and gold mines until 2041.

The mining company will guarantee a significant increase of state revenue. Moreover, it will construct a new smelter.

"President's approval is based on Law Number 4 on Mineral and Coal Mining. The extension is  2 X 10 years, meaning 2031 and 2041," he said.