Freeport’s Papua mine deal buys time

(Bhima Yudhistira Adhinegara, Muhammad Zulfikar Rakhmat – Lowy The Interpreter) Indonesia and the US mining giant Freeport-McMoRan have struck an agreement extending the operating rights of the vast copper and gold complex in Papua for the life of its reserves. The memorandum of understanding signed last week amends the special mining permit for the Grasberg mine, operated by PT Freeport Indonesia (PTFI), preserves the existing governance structure, and sets out commitments for expanded exploration spending, social investments in Papua, including a hospital and medical education facilities, continued prioritisation of domestic downstreaming, and an eventual additional 12% equity transfer to the Indonesian state. Freeport will retain 48.76% ownership, declining to roughly 37% after 2042. – Freeport’s Papua mine deal buys time | Lowy Institute