“We have submitted letters since last year that the SOEs are ready to take over Freeport Indonesia’s shares,” the ministry’s business restructuring and development deputy Aloysius K Ro said in Jakarta on Tuesday, as reported by kompas.com.

He said the letters had been sent to the Finance Ministry and the Energy and Mineral Resources Ministry.

Read also: Freeport agrees to 51% divestment, other terms: CEO

The ministry would establish a holding company through which mining sector SOEs would be able to purchase the Freeport shares, Aloysius said. He noted that the SOEs had the financial capability to buy the shares, as many lenders had had expressed their readiness to disburse loans toward the purchase.

Richard Adkerson, the CEO of parent company Freeport McMoRan, announced the mining giant's agreeing to divest its shares at Tuesday's joint conference with the government in Jakarta.

Adkerson also stated that the company had agreed to convert Freeport Indonesia’s contract of work (CoW) into a Special Mining License (IUPK), to build a smelter within the next five years and increase its contribution to state revenues from its Grasberg mine in Papua.

In return, the government will extend Freeport's mining contract, which will expire in 2021, by another 20 years to 2041. (bbn)

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