11 months ago
Freeport to Divest 12% Stake in Indonesian Unit
Imagine a big company called Freeport that mines copper in Indonesia.
They've agreed to give 12% of their business in Indonesia to the Indonesian government for free!
This is part of a deal to let Freeport keep operating their big copper mine until after the year 2041.
The government already owns more than half of this mine.
This mine is a big deal, but there have been problems, like when it was shut down because of a ban on exporting stuff from the mine.
Recently, a flood in the mine caused production to slow down.
Now Freeport wants to give the Indonesian government more control.
Freeport-McMoRan Inc. agreed to give a 12% share in its Indonesian unit to the government.
The deal was agreed upon in the US.
The divestment is part of a license extension for the Grasberg copper mine.
The Indonesian government already owns a 51% share.
Production at the mine was halted in the past due to export issues and now due to flooding.
- Who
- Freeport-McMoRan Inc. and Indonesian government
- What
- Freeport agreed to divest a 12% stake in its Indonesian unit.
- Where
- Indonesia, specifically the Grasberg copper mine.
- When
- The agreement was reached recently.
- Why
- As part of an agreement to extend Freeport's license to operate the Grasberg mine past 2041.
Key facts
- Company
- Freeport-McMoRan Inc.
- Deal
- Divestment of 12% share
- Recipient
- Indonesian government
- Location
- Indonesia (Grasberg mine)
- Existing Government Share
- 51%
- License Extension
- Until after 2041
Quotes
Rosan Roeslani
Head of Indonesia’s Danantara sovereign wealth fund
“free of charge”
livemint.com
Sources
Related news
India’s Fourth BRICS Chair Faces a Much Larger Summit
India’s Record Wheat Harvest Opens $1.5 Billion Export Window
Sitwala Settles For Silver After Gilchrist Wins Pan Am Final
India’s Forex Diversification Should Outlast Short-Term Dollar Pressures
World Coconut Day Celebrates Tree of Life’s Global Significance
