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FREEPORT - JAKARTA. Indonesia's energy minister said on Wednesday discussions are underway with copper miner Freeport Indonesia (PTFI), after media reported that Freeport-McMoRan will give 20% of its PTFI stake to the government in exchange for extending its permit.
President Joko Widodo earlier said Freeport, which operates the Grasberg copper and gold mine in the country's eastern region of Papua, would get a 20-year extension on its mining permit in exchange for the shares, according to news website Kontan.co.id.
A spokesperson for PTFI, Katri Krisnati, also said discussions on the permit extension were ongoing.
Freeport-McMoran currently holds a 49% stake in PTFI, with Indonesian state miner MIND ID controlling the rest, and its current mining permit is valid until 2041.
Read Also: Indonesia Increases Shareholding in Freeport
Energy minister Arifin Tasrif said integrated mineral mines are eligible to have their mining permits to be extended by up to 20 years, as long as the state is able to reap greater benefits.
"Of course every extension phase has to be able give bigger benefit for the state, which will be discussed later," Arifin told reporters, adding that Jakarta is preparing a regulation for the permit to be extended while negotiations are ongoing.
Indonesia's investment minister previously said Freeport Indonesia must agree to divest an additional 10% stake to the government at the cheapest price possible after its current permit expires.
