US mining giant, Freeport-McMoRan Copper & Gold, is planning to sell a 9.36 percent stake in its Indonesian unit to the Papua provincial government.
Reports quote company spokesman, Budiman Moer-dijat, as saying the sale of the stake in PT Freeport Indonesia is expected to be completed this year.
He said Freeport is negotiating to sell the shares to the Papua provincial government.
The Investor Daily Indonesia reported earlier that PT Aneka Tambang, Indonesia's second-biggest nickel producer, and the Papua government may join to buy the 9.36 percent stake.
The deputy state enterprises minister in charge of mining and energy said the central government is also reviewing a plan to increase its stake in Freeport.
The central government owns a 9.36 percent stake in Freeport Indonesia, while Freeport-McMoRan controls the rest.