Freeport McMoran (FCX) has announced that the application process for extending PT Freeport Indonesia’s (PTFI) Special Mining Business License (IUPK) is currently underway, ensuring operations beyond its current contract’s expiration in 2041.
This extension is intended to maintain large-scale operations benefiting all stakeholders, while offering growth opportunities through additional resource development at Grasberg in Central Papua.
According to its third quarter 2024 financial report, Freeport McMoran aims to reach an agreement with PT Mineral Industri Indonesia (MIND ID) for the transfer of an additional 10 percent ownership in PTFI by 2041.
Currently, Indonesia holds a 51 percent stake in PTFI, which fulfills prerequisites for extending the IUPK, such as the construction of an operational copper smelter and further investment commitments.
MIND ID’s additional 10 percent ownership, as supported by Indonesia’s Ministry of Energy and Mineral Resources (ESDM), would bring Indonesia’s ownership to 61 percent, per directives from President Joko Widodo.
Speaking on the additional share transfer, ESDM Minister Bahlil Lahadalia expressed hopes for minimum costs in the transaction.
“I’ve said from the start it should ideally be free or at minimum cost,” Bahlil said on October 18, 2024.
With Freeport McMoran supporting continuity, the permit extension and ownership shift would bolster Indonesia’s control over its resources and support long-term sustainability and economic benefit.
