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Jakarta Post

Freeport divestment deal still far from settlement

  • Viriya P. Singgih and Suherdjoko

    The Jakarta Post

Jakarta/Semarang   /   Sat, September 2 2017   /  12:21 am

Richard Adkerson, the CEO of American mining giant Freeport-McMoRan (FCX), gave the thumbs-down to several journalists while waiting for a joint press conference with Indonesian officials last week over the future operation of the company’s local unit. While Adkerson emphasized FCX’s willingness to compromise on Indonesia’s demand for it to sell its controlling stake in PT Freeport Indonesia (PTFI), his gesture seemed to indicate the fight to forge a permanent deal with Indonesia would be an uphill battle. There are still three main issues that need to be resolved, namely the valuation of the shares, the Indonesian buyers of the stake and what to do about an unincorporated joint venture between FCX and Anglo-Australian miner Rio Tinto in PTFI. This is despite the fact that Indonesian officials have been loudly claiming victory in the negotiations, giving the impression that FCX h...