Freeport to cut stake in Indonesia mine after gov't pressure

Indonesia is permitting Freeport-McMoRan to proceed working an enormous gold and copper mine after the U.S. firm agreed to relinquish majority possession of it to the federal government.

Indonesia’s Power Minister Ignasius Jonan advised a information convention Tuesday that Phoenix, Arizona-based mostly Freeport-McMoRan Copper & Gold Inc. might function the mine in easternmost Papua till 2041 beneath a brand new association with the federal government.

Particulars are nonetheless to be labored out, nevertheless it paves the best way to finish a prolonged dispute between Freeport and Indonesia that lowered the Grasberg mine’s manufacturing in current months.

Jonan stated the U.S. firm’s subsidiary PT Freeport Indonesia agreed to scale back its possession of the mine, construct smelters and convert its unique settlement signed with the federal government of former dictator Suharto in 1991 to a particular mining license.

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