Freeport Secures Agreement with Indonesia to Extend Mining Rights
Freeport-McMoRan Inc. (NYSE: FCX) has signed a Memorandum of Understanding (MOU) with the Indonesian government to extend the operating rights of its subsidiary, PT Freeport Indonesia (PTFI), in the Grasberg minerals district, according to a company statement released Thursday. The mining giant — whose shares have surged over the past year — continues to strengthen its position as a major global player in the metals and mining industry.
The agreement outlines terms to amend PTFI’s special mining license, granting a resource-life extension beyond its current expiration in 2041. Under the arrangement, Freeport will retain a 48.76% ownership stake in PTFI through 2041. After that, the company will transfer a 12% stake to Indonesian government interests at no cost, reducing its ownership to approximately 37% from 2042 onward.
The MOU also includes provisions for enhanced community support initiatives in Papua. These commitments involve funding a new hospital and two medical education facilities, alongside increased exploration spending and accelerated studies for long-term resource development.
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In addition, PTFI will continue prioritizing domestic processing of copper and other minerals while positioning itself to potentially supply refined copper to the United States under market-based conditions if required.
“Grasberg operations have delivered substantial benefits to all stakeholders over six decades, and this extension creates opportunities to build further value at one of the world’s most significant copper and gold deposits,” said company leadership in an official release.
The extension remains subject to approval through amended mining permits issued by the Indonesian government. PTFI plans to finalize its application reflecting the agreed terms in the near term.
Freeport-McMoRan operates major copper, gold, and molybdenum assets worldwide, including the renowned Grasberg minerals district in Indonesia, as well as significant operations across North and South America.