POST Online Media Lite Edition



 

Indonesia strikes $3.85 billion deal to buy majority stake in Freeport mine

Staff Writer |
Indonesia and Freeport-McMoRan have struck an initial agreement for state-owned mining company PT Inalum to take a controlling stake in Freeport’s local unit, government officials said on Thursday.

Article continues below




The agreement will give Indonesia control of the Grasberg mine, the world’s second-biggest copper mine, and should cap years of wrangling over the mining rights for the site. Last August, the two sides agreed to let Freeport keep operating the mine while ceding control.

Indonesia’s State-Owned Enterprises Minister Rini Soemarno said on Thursday state mining company PT Inalum will pay $3.85 billion to acquire a majority stake in the local unit of Freeport-McMoRan.

She made the comments after Inalum and Freeport signed a heads of agreement that will give Indonesia control of the Grasberg mine, the world’s second-biggest copper mine.


What to read next

PTTEP suspends Indonesia investment over oil spill case
China's CCB bank launches Indonesia brand
Lufthansa talks with pilots fail, new strikes on horizon