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Jakarta Post

Purchase agreement for Freeport shares to be inked in August: Inalum

  • Stefanno Reinard Sulaiman

    The Jakarta Post

Jakarta   /   Mon, July 23, 2018   /   05:24 pm
Purchase agreement for Freeport shares to be inked in August: Inalum Workers operate mining equipment in a tunnel at the Grasberg mine in Timika, Papau. (Courtesy of/PT Freeport Indonesia)

State-owned mining holding PT Indonesia Asahan Aluminium (Inalum) expects to sign an agreement with US-based mining company Freeport-McMoran (FCX) to acquire a controlling stake in PT Freeport Indonesia (PTFI) in August.

Inalum head of corporate communication Rendi Witular said on Monday that the purchase agreement was one of three planned agreements that would see Inalum hold 51 percent of PTFI. The two other agreements, also to be signed in August, are an exchange agreement and a shareholders agreement.

“The three agreements are handled in parallel. [...] To date, there is no obstacle that may hamper the deal,” he said.

On July 12, the government, which was represented by Inalum, inked a heads of agreement (HoA) with FCX, signed by FCX CEO Richard Adkerson and Inalum president director Budi Gunadi Sadikin.

Previously, the State-Owned Enterprise (SOE) Ministry's undersecretary for mining, strategic industries and media affairs, Fajar Harry Sampurno, explained that the purchase agreement would regulate, among other aspects, details of the payment process.

As for the welfare of PTFI workers, Rendi said Inalum would discuss it after the divestment process was completed, while the compensation for environment damage at the Grasberg mining site had already been priced in when the two parties agreed on the valuation of the stake. (bbn)