U.S.-based mining company Freeport-McMoRan Inc. FCX 1.57% said it would give up its majority stake in the giant Grasberg copper and gold mine to end a long-running dispute with Indonesia, cutting its ownership to 49% from 90.64%.
The agreement, announced by Indonesian Energy Minister Ignasius Jonan and Freeport Chief Executive Richard Adkerson during a press conference Tuesday, will also require Freeport to build smelters, a goal of Indonesia to increase value-added wealth from its mineral resources.
Indonesia will extend Freeport’s permit from 2021 to 2031 and then another 10 years to 2041 if all requirements are met, Mr. Jonan said.
Freeport-McMoRan has operated in the sprawling archipelago country for decades and invested $12 billion in developing Grasberg, becoming Indonesia’s largest taxpayer in the process. The company has been reluctant to boost investment pending a resolution of the dispute, and labor action at the mine has affected copper prices.
Source: www.wsj.com
