10 Mar 2017

Indonesia ready to acquire majority in West Papua miner

7:51 pm on 10 March 2017

Indonesia is reported to have set aside US$2.96 billion dollars to acquire shares in PT Freeport Indonesia, which mines for copper and gold in Papua.

The Jakarta Post says the company is required to divest at least 51 percent of its shares under Indonesia's new mining regulations.

The fund would be used to buy just over 40 percent of Freeport's shares as Indonesia already holds 9.36 percent of the mining giant's stock.

The government and Freeport have been negotiating several issues including the conversion of Freeport's contract agreement from a Contract of Work to a special mining license, which would include the share divestment and a permit to export concentrate.

For the share acquisition, Jakarta is reported to be sourcing the money from the state-owned enterprises' pension fund.