FX.co ★ Indonesia to Receive Free 12% Stake in Freeport Amid Grasberg Disruptions

Indonesia is poised to conclude an agreement with Freeport-McMoRan, enabling a local partner to acquire a 12% interest in PT Freeport Indonesia, according to Investment Minister Rosan Roeslani on Wednesday. However, the timeline for the finalization remains unspecified. Currently, MIND ID, the state-owned mining conglomerate, holds a 51% stake in PT Freeport Indonesia, the operator of Grasberg, which boasts the distinction of being the world's largest gold mine and the second-largest for copper. Roeslani noted that the 12% share would be allocated "free of charge." Emphasizing the strategic importance, Mining Minister Bahlil Lahadalia highlighted the requirement to extend Freeport's mining permit to facilitate future resource exploration. Recent challenges arose when Freeport declared force majeure at the Grasberg site following mudslides that tragically resulted in the deaths of two workers. The company anticipates that operations may not fully recover to their pre-incident capacity until at least 2027.