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Indonesia government agree to extend Freeport’s contract to develop Grasberg mining beyond 2021

JAKARTA (rambuenergy.com) – Freeport-McMoRan Inc. (NYSE: FCX) announced that PT Freeport Indonesia (PT-FI) and the government of Indonesia have engaged in productive discussions regarding PT Freeport Indonesia’s long term operating rights and investment plans. The Indonesian government has assured PT Freeport Indonesia that the government will approve the extension of operations beyond 2021, including the same rights and the same level of legal and fiscal certainty provided under its Contract of Work.

The decision considers PT Freeport Indonesia’s major investments and prior and ongoing commitments to increase benefits to Indonesia, including previously agreed higher royalties, domestic processing, divestment and local content.

The Indonesian government is currently developing economic stimulus measures which include revisions to mining regulations to promote economic and employment growth.

“We are pleased with the assurances from the Government of Indonesia of legal and fiscal certainty and look forward to continuing our long term partnership and investment plans to advance the economy, jobs and economic velocity in Papua,” James R. Moffett, Chairman of Freeport-McMoRan Inc., stated.

On Friday, the Energy and Mineral Resource Ministry has also issued a statement, affirming the government’s decision to extend Freeport Indonesia’s contract to continue operating the Grasberg Mining project.

Sudirman Said, Indonesia’s Minister of Energy and Mineral Resources, said, “We welcome the continuation of Freeport’s investments in Papua which will provide increasing benefits to the national and local economies.”

FCX is a premier U.S.-based natural resources company with an industry-leading global portfolio of mineral assets, significant oil and gas resources and a growing production profile. 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; the Tenke Fungurume minerals district in the DRC; and significant U.S. oil and natural gas assets in the Deepwater GOM, onshore and offshore California and in the Haynesville natural gas shale, and a position in the Inboard Lower Tertiary/Cretaceous natural gas trend onshore in South Louisiana.  (*)

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