Freeport to Give Indonesia a Majority Stake in Its Grasberg Mine
Freeport and the Indonesian government said in a news conference on Tuesday
that the American company would transfer to Indonesia a 51 percent stake in Grasberg, the world’s largest gold mine and second-largest copper mine.
The deal unveiled on Tuesday between the American owner, the mining company Freeport-McMoRan,
and the Indonesian government is meant to bring an end to years of rising public anger over American control of one of the mining industry’s crown jewels.
Late last year, Indonesia unveiled legislation that required foreign mining companies to switch to a new licensing agreement
that required them to divest 51 percent of their stakes in Indonesian mines.
In 2015, Grasberg’s output of gold and copper was worth $3.1 billion Local politicians and activists have complained
that Freeport pays little in taxes; the company has said it pays back more than half its profit from the mine in taxes, fees, royalties and other payments.
Mr. Joko has insisted that mining companies must divest majority stakes in order to continue operating in Indonesia,
and the government has turned up pressure on foreign companies to do just that.
