From Government of Indonesia

Papua Moves to Acquire Stake in Freeport

Papua’s provincial administration is negotiating with PT Freeport Indonesia on a 9.36% stake offered by the US copper and gold mining company.

Freeport earlier said it would sell the stake for $1 billion. Freeport made the offer as it is required by regulation to sell part of its shares to a local partner.

"We are holding talks with Freeport. The offer attracted the region," Papua Governor Barnabas Suebu was quoted as saying by Antara on Tuesday (9/01/07).

The funds could come from anywhere, Suebu said, adding the plan had been first considered by his predecessor, Jacobus Perviddya.

Earlier, Mines and Energy Minister Purnomo Yusgiantoro said if the provincial administration fails in the negotiation, Freeport would be asked to hold an open tender.

_________________________ Indonesian Business and Investment News Aggregator