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Jakarta Post

Mining holding company to acquire Freeport’s shares

  • News Desk

    The Jakarta Post

Jakarta   /   Thu, November 30, 2017   /   03:44 pm
Mining holding company to acquire Freeport’s shares Freeport Indonesia’s Grasberg mine in Mimika, Papua. (JP/Nethy Dharma Somba)

State-owned PT Indonesia Asahan Aluminium (Inalum), which has been appointed to lead a state-owned mining industry holding, has said that it will focus on purchasing 40.64 percent shares of gold and copper miner PT Freeport Indonesia (PTFI).

With the appointment, Inalum own 65 percent shares in PT Aneka Tambang (Antam), 65.02 percent shares in PT Bukit Asam, 65 percent shares in PT Timah and 9.36 percent shares in PTFI. The holding currently has four members – Inalum, Antam, Bukit Asam and Timah.

“Pray for us that there will be five members,” said Inalum president director Budi Gunadi Sadikin at a press conference in Jakarta on Wednesday as reported by kontan.co.

Read also: Indonesia, Freeport still differ on valuation, other issues

PT Freeport Indonesia's agreement to divest its 51 percent shares was announced on Aug. 29 by Richard Adkerson, the CEO of US mining giant Freeport McMoRan, its parent company.

State-Owned Enterprises (SOEs) Minister Rini Soemarno signed a document to establish the holding on Monday.

The four companies held an extraordinary shareholders meeting on Wednesday to officiate the share transfers.

Budi said Inalum would discuss the expansion with shareholders – both the government and the investing public.  “The progress of the company in Papua is good,” he said, adding that apart from acquiring Freeport’s shares, the holding would strengthen synergy with members of the holding.

He said Inalum would cooperate with Bukit Asam to construct power plants as the holding company would require significant amounts of electricity.

Budi said after the establishment of the holding, the company’s assets would stand at  Rp 21 trillion (US$1.47 billion). (bbn)