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Jakarta Post

'Government prepares funding scheme to buy Freeport’s shares'

  • News Desk

    The Jakarta Post

Jakarta   /   Thu, March 2, 2017   /  04:22 pm
'Government prepares funding scheme to buy Freeport’s shares' A worker monitors the mineral flotation process to produce copper, gold and silver concentrates at one of Freeport's facilities. (Kompas/B. Josie Susilo Hardianto)

An official has said the Indonesian government has enough funding to buy shares in copper and gold miner PT Freeport Indonesia as it has started to prepare a holding company to manage the mining site in Papua.

“The holding company will buy shares in Freeport,” said Fajar Harry Sampurno, the deputy for mining, strategic industry and media affairs at the State-Owned Enterprises Ministry, on Thursday.

Currently, the Indonesian government and Freeport are negotiating changes to Freeport’s prevailing contract agreement following the issuance of new mining regulations.

(Read also: Freeport vs Indonesia: In defense of public welfare)

Freeport insists that the Contract of Work (CoW) signed in 1991 is still valid and should be respected. The government wants the company to convert its CoW into a special mining license and divest 51 percent of its shares.

Fajar said his ministry planned to send letters to the Finance Ministry and the Energy and Mineral Resources Ministry to discuss the funding scheme to take over the mine in Mimika regency, Papua.

If the government assigns the State-Owned Enterprises Ministry to handle the process, the ministry will appoint an independent appraisal company to assess the value of Freeport’s shares, said Fajar. (bbn)

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