Loading ...JAKARTA — State-owned mining holding company Indonesia Asahan Aluminum on Thursday signed an agreement with Freeport-McMoRan that will see it take control of the U.S. miner’s local unit for $3.85 billion.
The deal includes Australian miner Rio Tinto’s participating interest in Freeport Indonesia’s operations at the Grasberg mine in Papua province, one of the world’s largest gold and copper pits.
Rio’s interest will be converted into shares of Freeport Indonesia, allowing Indonesia Asahan Aluminum, known as Inalum, to increase its stake in the unit from 9.36% to 51%.
“With the signing of the heads of agreement, the partnership between [Freeport-McMoRan] and Inalum is expected to increase the quality and added value of the extractive industry in the future, and improve the welfare of the Indonesian public,” said Finance Minister Sri Mulyani Indrawati after the signing ceremony.