https://www.miningweekly.com

Freeport Indonesia must divest additional 10% stake to govt - Minister

3rd May 2023

By: Reuters

  

Font size: - +

JAKARTA - Indonesia's Investment Minister said on Wednesday that copper miner Freeport Indonesia must agree to sell an additional 10% stake to the government, as negotiations get underway for the US company to extend its permit to operate in the country.

Bahlil Lahadalia said the government will seek the cheapest pricing possible to increase its stake from 51% to 61% in Freeport-McMoRan's Indonesian unit, which controls one of the world's largest copper mines.

"We ask for Freeport's 10% divestment through a state company for as cheap as possible. I'm not asking to see the valuation," he said in an interview, adding that Freeport must agree to this requirement to be able to extend its mining permit which currently runs to 2041.

"If we are not thinking about this now, in 2041 there will be job losses and Papua's economy will be impacted," Bahlil said, referring to the region where Freeport's flagship Grasberg mine is located.

He added Freeport will also be required to build a smelter in Papua in addition to the $3-billion project it is building in East Java. Partnership with Papuan businesses and meeting environmental standards would also be part of negotiations, Bahlil added.

The $3.85-billion that Indonesia invested in the miner in 2018 via a state company has proven beneficial for the country, and the government expects to break even on that deal next year, he said.

Although details of the new deal are still being discussed, he said, it is crucial for both parties to finalise Freeport's permit extension as early as possible to avoid a dip in output.

Freeport Indonesia said it produced three-million tonnes of copper concentrate in 2022, an annual record. The miner has in recent year transitioned into underground mining at Grasberg.

Edited by Reuters

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Willard
Willard

Rooted in the hearts of South Africans, combining technology and a quest for perfection to bring you a battery of peerless standing. Willard...

VISIT SHOWROOM 
WearCheck
WearCheck

Leading condition monitoring specialists, WearCheck, help boost machinery lifespan and reduce catastrophic component failure through the scientific...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (05/06/2026)
5th June 2026 By: Martin Creamer
Photo of Martin Creamer
New cadastre, Sam Molefi, PyroFuZA make headlines
5th June 2026

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.048 0.071s - 111pq - 2rq
Subscribe Now