Freeport Granted Extension to Mine Indonesia's Grasberg Through July
04 Juli 2018 - 10:03AM
Dow Jones News
By Anita Rachman
JAKARTA, Indonesia-Indonesia said Wednesday it had granted U.S.
mining giant Freeport McMoRan Inc. a one-month extension to
continue work at one of the world's largest copper mines while the
two parties move closer to a deal that will give Jakarta control of
the venture.
Bambang Gatot Ariyono, director general for coal and minerals,
said the government expected to conclude negotiations with
Arizona-based Freeport this month to take majority control of
Freeport's local subsidiary, PT Freeport Indonesia, which has mined
the lucrative Grasberg copper-and-gold mine in remote eastern
Indonesia for decades.
He said Freeport had been granted a one-month extension to
continue mining until July 31. Freeport's previous operating
permit, granted in January, expired at the end of June. Freeport
had proposed extending the permit another six months, local media
reported.
Freeport owns about a 91% stake in its Indonesian venture, with
the government holding the rest. The world's largest publicly
traded copper miner said last year that it would give up its
majority stake in Grasberg in line with new rules for foreign
miners, dropping to 49% as Indonesia seeks a greater share of the
wealth from the country's vast mineral resources.
"It's nearing final," Mr. Ariyono told reporters. He said he
expects that by the end of this month, the government would resolve
issues relating to the divestment, including requirements forcing
Freeport to build a new smelter, ensuring contract terms,
establishing a new tax regime and addressing concerns over
environmental waste at the mountaintop mine.
-- Write to Anita Rachman at anita.rachman@wsj.com
(END) Dow Jones Newswires
July 04, 2018 03:48 ET (07:48 GMT)
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