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Jakarta Post

Deutsche Bank interested in helping SOEs buy Freeport’s shares

  • News Desk

    The Jakarta Post

Jakarta   /   Wed, September 20, 2017   /   01:53 pm
Deutsche Bank interested in helping SOEs buy Freeport’s shares Freeport Indonesia’s mine in Grasberg, Mimika, Papua. (JP/Nethy Dharma Somba)

Coordinating Maritime Affairs Minister Luhut Binsar Pandjaitan has said that Deutsche Bank has expressed some interest in providing Indonesian state-owned enterprises (SOEs) with financing to buy shares in gold and copper miner PT Freeport Indonesia.

“Deutsche Bank visited [my office] to offer financial assistance if SOEs want to buy Freeport shares,” Luhut said at his office in Jakarta on Tuesday as reported by kompas.com.

The Indonesian government and PT Freeport Indonesia, a subsidiary of United States-based Freeport McMoRan, have agreed that the latter will sell 51 percent of its shares in exchange for a contract extension for its Grasberg mine in Mimika, Papua, up to 2041.

The divestment agreement was announced by Freeport McMoran CEO Richard Adkerson at a joint press conference with Finance Minister Sri Mulyani Indrawati and Energy and Mineral Resources Minister Ignasius Jonan on Aug. 29.

Read also: Indonesia wants SOEs to buy Freeport’s divested shares

Several state-owned mining companies -- PT Indonesia Asahan Alumunium (Inalum), PT Aneka Tambang (Antam), PT Bukit Asam and PT Timah – earlier announced a plan to establish a holding company to jointly buy the shares.

PT Freeport Indonesia also agreed to convert its contract of work (CoW) into a special mining permit (IUPK), build a smelter within the next five years and increase its contribution to state revenues from its Grasberg mine. (bbn)