Freeport Disagrees With Indonesia's $4 Billion Valuation of Grasberg Mine Stake
December 12 2017 - 3:38AM
Dow Jones News
By I Made Sentana and Deden Sudrajat
JAKARTA--Freeport-McMoRan Inc. disagrees with the Indonesian
government's valuation of a 41.64% stake in the giant Grasberg
copper and gold mine that the U.S. company has to sell to
Indonesia.
Freeport values the stake at between $12 billion and $13
billion, but Jakarta values it at $4 billion, Napoleon Sawai, a
spokesman for Freeport's local division PT Freeport Indonesia, said
Tuesday.
"The teams from the two parties are still in a negotiation," Mr.
Sawai said, adding Freeport hoped to reach an agreement by the end
of the year.
In August, Freeport said it would give up its majority stake in
the mine, dropping from 90.64% to 49%.
As part of a deal with Indonesia, the company's mining permit
would be extended until as long as 2041.
Indonesia already owns 9.36% stake. It has given state-owned
miner PT Indonesia Asahan Aluminium the job of acquiring the 41.64%
stake.
Write to I Made Sentana at i-made.sentana@wsj.com
(END) Dow Jones Newswires
December 12, 2017 03:23 ET (08:23 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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