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Jakarta Post

Jonan tells Freeport to release 51 percent of shares

  • News Desk

    The Jakarta Post

Jakarta   /   Mon, January 16, 2017   /  01:31 pm
Jonan tells Freeport to release 51 percent of shares Energy and Mineral Resources Minister Ignasius Jonan (left) and Deputy Energy and Mineral Resources Minister Arcandra Tahar talk to journalists after their inauguration at the State Palace on Oct. 14. (Antara/Yudhi Mahatma)

Energy and Mineral Resources Minister Ignasius Jonan has stressed that the government will require mining giant PT Freeport Indonesia to release 51 percent of its shares, stressing that there is no exception in abiding by the new mining regulation.

“There is no exception to the divestment. It must be 51 percent of its shares,” said Jonan on Monday, as reported by tempo.co.

The requirement for mining companies to divest 51 percent of their shares is stipulated in Government Regulation No. 1/2017 on the mineral and coal mining business. Initially, Freeport was only required to sell 30 percent of its shares, because the company has underground mining operations.

(Read also: Indonesia pledges leeway for obedient miners)

Jonan made the statement at his office in Jakarta on Friday, where he had a meeting with Freeport McMoran Copper & Gold Inc. president Richard C. Adkerson and Freeport Indonesia president director Chappy Hakim.

Jonan also said that Freeport had submitted an official letter confirming its commitment to convert its contract of work (CoW) to a special mining production (IUPK) license, as required by the new regulation.

“They also mentioned their commitment to building a smelter within five years. If so, we will issue the export recommendation for them immediately,” the minister added. (bbn)

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