TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Indonesia targets deal with Rio Tinto in June
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
State-Owned Enterprises Minister Rini Soemarno (tribunnews.com/File)
S
tate-Owned Enterprises Minister Rini Soemarno has said the government is aiming at concluding its negotiations with Rio Tinto on the purchase of the latter’s interests in Papua’s Grasberg mine -- the world’s largest gold and second-largest copper mine.
She, however, was reluctant to talk about the negotiation involving state-owned mining company PT Indonesia Asahan Aluminium (Inalum), as a representative of the government and Freeport McMoran, the parent company of PT Freeport Indonesia (PTFI), and Rio Tinto.
“If we have signed the agreement, we will reveal it. God willing, the negotiation will be concluded in June,” said Rini in Jakarta on Thursday as reported by tribunnews.com.
Previously, London-based Rio Tinto confirmed it was discussing the sale with Inalum and Freeport McMoran. Rio Tinto said it noted reports of the potential purchase by Inalum of Rio Tinto's entire interest in the Grasberg mine for US$3.5 billion.
Rini also declined to comment about the price of Rio Tinto’s participating interests in mining, saying that it was under negotiation.
“No, we cannot reveal it. […] We are in the process of [document] finalization before we sign the agreement,” she stressed.
The government has appointed Inalum to buy PTFI’s shares, in line with a law that requires foreign mining companies to divest 51 percent of their shares to Indonesian entities.
Freeport McMoran and Rio Tinto established an unincorporated joint venture in 1995, which gave the latter control of 40 percent up to 2022 in certain assets and future production above specific levels in one of the blocks at Grasberg. (bbn)
