By Anita Rachman and Deden Sudrajat
JAKARTA, Indonesia--U.S.-based mining company Freeport-McMoRan Inc. (FCX) said it will give up its majority stake in the giant Grasberg copper and gold mine to end a long-running dispute with Indonesia, cutting its ownership to 49% from 90.64%.
The agreement, announced by Indonesian Energy Minister Ignasius Jonan and Freeport Chief Executive Richard Adkerson during a press conference Tuesday, will also require Freeport to build smelters, a goal of Indonesia to increase value-added wealth from its mineral resources.
Freeport-McMoRan has operated in the sprawling archipelago country for decades and invested $12 billion in developing Grasberg, becoming Indonesia's largest taxpayer in the process. The company has been reluctant to boost investment pending a resolution of the dispute, and labor action at the mine has affected copper prices.
Write to Anita Rachman at [email protected]