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Jakarta Post

Freeport McMoRan boss arrives at energy ministry for undisclosed meeting

  • Stefanno Reinard Sulaiman

    The Jakarta Post

Jakarta   /   Fri, May 18, 2018   /   02:11 pm
Freeport McMoRan boss arrives at energy ministry for undisclosed meeting Freeport McMoran president and CEO Richard C. Adkerson is pictured at a press conference in Jakarta on Jan. 2, 2017. (JP/Dhoni Setiawan)

Freeport McMoRan president and CEO Richard C. Adkerson arrived at the Energy and Mineral Resources Ministry on Friday at 11:20 a.m. for a meeting with the minister, although details on the meeting were not disclosed.

Freeport McMoRan is the parent company of PT Freeport Indonesia (PTFI), and has long been in talks with the government over its Grasberg copper mine in Papua and divesting 51 percent of PTFI shares as part of the terms of a new mining license.

The ministry’s mineral and coal director general Bambang Gatot Ariyono claimed to have no information on the purpose of the meeting.

"I don't know yet, I was just called to come [to the meeting]," he said, when he was asked about the meeting between Energy and Mineral Resources Minister Ignasius Jonan and Adkerson upon his arrival at the ministry.

Adkerson, who was accompanied by PTFI executive vice president Tony Wenas did not make any comments on the meeting. 

Recently, the ministry issued a ministerial regulation that extended the divestment deadline to 2019 for foreign companies holding a special mining permit (IUPK), which included Freeport.

The extension of the deadline for divestment was stipulated in the Energy and Mineral Resources Ministerial Regulation No. 25/2018.

The regulation stipulates that a holder of a special mining permit (IUPK) and which formerly had a working contract (KK) and has been in production for at least five years since the issuance of Government Regulation No 1/2017 is obliged to divest 51 percent of its stake no later than 2019.

Divestment talks between the government and Freeport have been taking place since early 2017 and the government initially targeted concluding negotiations by the end of 2017. (bbn)