TEMPO.CO, Jakarta - U.S.-based mining giant Freeport-McMoRan’s shareholders are pressuring the company to stand up against the Indonesian government in its mining contract row. "Many of our shareholders feel that we have been too nice. Now we are in the position of standing up for our rights under the contract," Freeport-McMoRan CEO Richar Adkerson told a mining conference of institutional investors yesterday in Hollywood, Florida, the United States, as quoted by CNBC.
Freeport's partner Rio Tinto is also supportive of Freeport's tougher approach toward the Indonesian government, CEO Richard Adkerson said.
Read: Freeport Indonesia to Submit Appeal Following Export Ban
Adkerson said that Freeport had held talks with the majority shareholders, who have told the company to take aggressive stance over the dispute.
Freeport has refused to switch over its Contract of Work (CoW) to a special mining permit (IUPK).
Earlier last week, Adkerson said he will take Freeport contract dispute to international arbitration. He has accused the Indonesian government of breaching the provisions of the Contract of Work entered into in 1991 and Law No. 4/2009 on Mineral and Coal.
Read: Freeport Indonesia to Lay-off Workers Next Week
However, Adkerson had promised to first and foremost negotiate with the government within the 120-day deadline. If no agreement was reached during the said period, the company will take the dispute to international arbitration. “The procedure is in accordance with the Contract of Work,” he said in Jakarta on February 20.
Freeport will take the Indonesian government to international arbitration after it bans the mining company from exporting copper concentrate. Adkerson claimed that the Energy Ministry has unilaterally denied the rights since January 12.
Read: Freeport Yet to Agree on Switch Over from Contract of Work
He said Freeport had held talks with large shareholders but did not name them. Freeport's third-biggest shareholder is Carl Icahn, who holds 7 percent of its shares. Icahn is a special adviser to U.S. President Donald Trump, CNBC reported.
Adkerson expects the Indonesian government to resolve the dispute cooperatively.
Meanwhile, the Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan said that Papua local governments will get their fair share in Freeport divestment.
Luhut has dismissed Mimika Regent’s claim that the region would get 10-20 percent share in Freeport divestment.
DIKO OKTARA | CNBC | ALI NUR YASIN
