Freeport-McMoRan Announces Framework for Agreement with Indonesian Government Regarding Long-Term Operating Rights for PT Fre...
August 29 2017 - 8:00AM
Business Wire
Freeport-McMoRan Inc. (NYSE: FCX) today provided an update on PT
Freeport Indonesia's (PT-FI) negotiations with the Indonesian
Government regarding PT-FI’s long term operating rights.
FCX and the Government of Indonesia have reached an
understanding on a framework to support PT-FI's long-term
investment plans in Papua. This framework, which will require
definitive documentation and FCX Board and partner approvals,
includes the following key terms:
- PT-FI will convert its Contract of Work
to a special license (IUPK) which will provide PT-FI with long-term
operating rights through 2041.
- The Government will provide certainty
of fiscal and legal terms during the term of the IUPK.
- PT-FI will commit to construct a new
smelter in Indonesia within five years.
- FCX will agree to divest its ownership
in PT-FI at fair market value so that Indonesia interests own 51
percent of PT-FI's shares. The timing and process of divestment is
being discussed with the Government. The divestment will be
structured so that FCX will retain control over operations and
governance of PT-FI.
Richard C. Adkerson, President and Chief Executive Officer,
said: “We are pleased to announce an agreed framework to support
our ongoing operations and investment program in Papua. Reaching
this understanding on the structure of a mutual agreement is
significant and positive for all stakeholders. Important work
remains on documenting this agreement and we are committed to
completing the documentation as soon as possible during
2017.”
FCX is a leading international mining company with headquarters
in Phoenix, Arizona. FCX operates large, long-lived, geographically
diverse assets with significant proven and probable reserves of
copper, gold and molybdenum. FCX is the world’s largest publicly
traded copper producer.
FCX’s portfolio of assets includes the Grasberg minerals
district in Indonesia, one of the world’s largest copper and gold
deposits; significant mining operations in the Americas, including
the large-scale Morenci minerals district in North America and the
Cerro Verde operation in South America. Additional information
about FCX is available on FCX’s website at “fcx.com.”
Cautionary Statement Regarding Forward-Looking
Statements: This press release contains forward-looking
statements, which are all statements other than statements of
historical facts. The words “anticipates,” “may,” “can,” “plans,”
“believes,” “estimates,” “expects,” “projects,” “targets,”
“intends,” “likely,” “will,” “should,” “to be,” ”potential" and any
similar expressions are intended to identify those assertions as
forward-looking statements. FCX cautions readers that
forward-looking statements are not guarantees of future performance
and actual results may differ materially from those anticipated,
projected or assumed in the forward-looking statements. Important
factors that can cause FCX’s actual results to differ materially
from those anticipated in the forward-looking statements include
FCX's ability to secure regulatory approvals, the outcome of
ongoing discussions with the Indonesian Government regarding
PT-FI’s long-term operating rights and other factors described in
more detail under the heading “Risk Factors” in FCX's Annual Report
on Form 10-K for the year ended December 31, 2016, filed with the
U.S. Securities and Exchange Commission (SEC) as updated by FCX’s
subsequent filings with the SEC.
Investors are cautioned that many of the assumptions upon which
FCX's forward-looking statements are based are likely to change
after the forward-looking statements are made, including for
example commodity prices, which FCX cannot control, production
volumes and costs, some aspects of which FCX may not be able to
control. Further, FCX may make changes to its business plans that
could affect its results. FCX cautions investors that it does not
intend to update forward-looking statements more frequently than
quarterly notwithstanding any changes in its assumptions, changes
in business plans, actual experience or other changes, and FCX
undertakes no obligation to update any forward-looking
statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20170829005638/en/
Freeport-McMoRan Inc.Financial Contacts:Kathleen L. Quirk,
602-366-8016orDavid P. Joint, 504-582-4203orMedia Contact:Eric E.
Kinneberg, 602-366-7994
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