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an. 26, p1

Mining giant Freeport McMoran will start divesting its stake in subsidiary PT Freeport Indonesia in October as the two companies have drawn up an agreement that will allow the copper giant to resume exports.

The divestment would be carried out in two stages, said R. Sukhyar, the Energy and Mineral Resources Ministry'€™s director general for minerals and coal.

The first will be a 10.6 percent stake in October this year and the second will be the remaining 10 percent next year, according to Sukhyar.

A 2010 government regulation requires Freeport to divest some of its stake in its Indonesian subsidiary to the government, which already owns nearly 9.4 percent of Freeport Indonesia.

The update on the divestment came as Freeport and the government extended a six-month memorandum of understanding (MoU) '€” which expired at the weekend '€” that will allow the company to continue exporting despite a lack of progress in the construction of a required smelting plant

Your comments:

96 percent of Papua'€™s GDP? What does the rest of the country do? Just protest?

JLC

This is creeping nationalization. What the state cannot not get their hands on they just legislate for it. This looks bad for foreign investors.

Abu-abu

The US always supports Indonesia'€™s corrupt leaders in order to continue stealing the country'€™s abundant resources.  

Iwan

Doesn'€™t the US do that anywhere where it is in its own strategic and economic interests?

Mayling Pfe

No, sometimes they prefer to send in the troops.

Fred Frogley