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Indonesia’s Inalum close to acquiring Freeport’s Grasberg copper mine

Posted by ipso facto @ 10:05 on July 2, 2018  

Indonesia’s state-owned mining holding company PT Inalum is close to finalising a multi-billion-dollar deal to acquire a majority stake in the giant Grasberg copper mine, government officials said on Saturday.

Situated in Indonesia’s eastern-most province of Papua, Grasberg, the world’s second-largest copper mine, is owned and operated by Freeport Indonesia (PTFI), a subsidiary of U.S.-based Freeport McMoRan Copper & Gold Inc..

Global miner Rio Tinto has a joint venture with Freeport for a 40 per cent share of Grasberg’s production above specific levels until 2021, and 40 per cent of all production after 2021.

Inalum’s planned purchase of Rio’s interest will form part of an agreement for Indonesia to take a 51 percent stake in Grasberg, giving it control of the mine, which needs significant investment to move into its next phase underground.

Freeport, which would sell Inalum a further 9.36 percent stake, would see its current 90.64 percent holding in Grasberg diluted down to 49 percent, although it would remain the mine’s operator.

“Now we are preparing contracts. You could say it’s already completed – all that’s left is the finalisation of documents that need to be signed,” Deputy State-Owned Enterprises Minister Fajar Harry Sampurno told reporters at a government event.

cont. http://www.mining.com/web/indonesias-inalum-close-acquiring-freeports-grasberg-copper-mine/

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