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Freeport agrees to sell majority stake in Indonesian mining unit

Staff Writer |
Freeport-McMoRan of the U.S. has bowed to Indonesia's demand to divest the majority of its stake in an Indonesian mining unit to local parties.

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In exchange, the unit will get an extension on its permit to operate one of the world's largest copper mines, in Indonesia's Papua Province, through 2041.

On Tuesday, Freeport and the Indonesian government announced that Freeport also agreed to complete the construction of a new smelter by 2022.

It has taken the two parties months of acrimonious negotiations to reach this point, and details still have to be hammered out.

Chief executive Richard Adkerson said Freeport has agreed to Indonesia's terms and now has enough certainty to invest $20 billion to develop subterranean operations at its Grasberg gold and copper mine in Papua.

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