Freeport to yield control of giant Grasberg copper mine to Indonesia

Shares in Freeport McMoRan Inc (NYSE:FCX) were down in pre-market following the world's second largest copper miner’s announcement that it was giving Indonesia a majority stake in the firm’s massive Grasberg copper and gold mine

The deal means Freeport is giving a 51% ownership in the mine to Indonesia and has committed to build smelters in the country. In return, the US miner will be allowed to keep the mine open until 2014 after months of bitter dispute.

The Grasberg mining complex is responsible for more than a quarter of Freeport’s total output and before the current troubles it was set contribute an even greater proportion in 2017 as copper grades improve and gold production is boosted.

In 2016, the iconic mine produced more than 500,000 tonnes of copper and over 1 million ounces of gold.

 

More to come…

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