A dispute between Indonesia and US giant FMCG ends. Under new legislation, at least 51 per cent mining companies in Indonesia must be in Indonesian hands. FMCG had threated to end operations with job losses. Now it can operate its Papua mine until 2041, and build a new smelter.
Jakarta (AsiaNews) – US mining giant Freeport McMoRan Copper & Gold (FMCG) agreed to sell 51 per cent of its stake in Gasberg copper mine in Indonesia’s Papua province, said Ignasius Jonan, Indonesian Minister for Energy and Mineral Resources, in an announcement he made on Tuesday.
This closes a dispute with the US multinational, which mines for copper, gold and silver in Indonesia.
Under Indonesia’s new mining legislation, at least 51 per cent of mining operations in the country must be Indonesian-owned.
The deal with the government allows FMCG to extract precious metals in the Papua mine until 2041 and build a smelter.
The Indonesian government accepted FMCG’s demands that were left "pending during the negotiations over ownership. However, Minister Jonan said that the details of the agreement will be defined later.
In turn, this will not jeopardise what has been achieved so far, including the tax arrangements between the company and Indonesia’s Finance Ministry.
Indonesian authorities and FMCG had been engaged for months in tough negotiations. FMCG had threatened to stop operations with major job losses.