By Tatyana Shumsky
NEW YORK--Freeport McMoRan Copper & Gold Inc.'s (FCX)
acquisition of two energy companies wasn't motivated by concerns
about the future of Freeport's Indonesian or African operations,
Chief Executive Richard Adkerson said Wednesday.
Freeport McMoRan has agreed to buy McMoRan Exploration Co. (MMR)
and Plains Exploration & Production Co. (PXP) for about $9
billion.
"There's no development in Indonesia or in Africa, in our
international operations that's driving us to do this," Mr.
Adkerson said on a company conference call.
Freeport operates the Grasberg copper and gold mine, the world's
third-largest open-pit copper mine, in Indonesia as well as mines
in the Democratic Republic of Congo. The Indonesian government has
pressured Freeport to list part of its operations there on the
local stock exchange and has changed mining laws that could force
Freeport to reduce ownership of the Grasberg mine. In 2011, the
mine was the site of Freeport's first major labor strike in
Indonesia, where at least eight people were killed as workers
protested for higher pay.
Freeport has been in discussions with the Indonesian government
to extend an agreement that governs the terms of the company's
operations in the country to beyond 2021.
"We believe that we have strengthened our company from a risk
diversification standpoint by having a greater part of our company
here, in the United States," Mr. Adkerson said.
"You want to have your eye on diversification, but we're going
to have our eyes open for quality assets wherever they are," he
said.
"We are confident about our long-term situation in Grasberg," he
said.
Write to Tatyana Shumsky at tatyana.shumsky@dowjones.com
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