Acquired by Inalum, Freeport to Invest USD 20 Billion Until 2041
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22 December 2018 01:23 WIB
TEMPO.CO, Jakarta - The CEO of Freeport-McMorran Copper & Gold Inc., Richard Adkerson, said that the company will invest USD 20 billion to switch its operation from open pit mining to underground mining.
"Since 1990, we have conducted an open pit mining. Now we will operate the largest mining in the world. This is a very big investment. We will invest 20 billion US Dollars until 2041," Richard said at Merdeka Palace on Friday, December 21, 2018.
Richard said that the decision was carried out after PT Inalum (Persero) acquired 51.2 percent of his company's shares. It is estimated that in the next 2 years, PTFI's production will decrease considerably because the reserves in the open pit mining will run out.
Richard will also encourage labor and provide added value to the people of Papua.
"And also good environmental management for Indonesia and for us," Richard said.
PT Inalum has paid off the Freeport divestment payment on Friday, December 21, 2018. With the completion of the stock acquisition transaction, Freeport Indonesia now has a Special Mining Business License (IUPK) production operation. President Joko Widodo said that the other conditions for obtaining an IUPK had been completed.
"For matters relating to the environment, smelters, everything has also been resolved," The President said.
The production operation of IUPK can be obtained by Freeport if the four conditions have been met. The conditions include the repayment of the 51 percent divestment transaction, the obligation to build a smelter in five years agreed, the obligation to change the regime of work contracts to IUPK agreed, and state revenues must be greater after the regime change.
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