17 Aug 2017

Grasberg mine contract extended

8:29 pm on 17 August 2017

The contract of the gold and copper miner Freeport Indonesia to run the Grasberg mine in West Papua has been extended until 2041.

The Jakarta Post reported the company, a subsidiary of mining giant Freeport McMoran, was awarded the extention after agreeing to divest 51 percent of its shares to Indonesian entities.

Freeport's previous contract was due to terminate in 2021, but the Maritime Affairs Minister Luhut Binsar Pandjaitan told the Post the contract was extended for 20 years after the company agreed to the divestment and to construct smelters.

Operations at the Grasberg mine have been crippled since January due to a deadlock in negotiations between the company and the government.

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