JAKARTA (Yosefardi) – Minister of Industry, M.S. Hidayat, revealed that PT Freeport Indonesia will divest more 15.64% shares, of which 10.64% shares offered to the central government while the rest 5% will be sold through capital market, Bisnis.com reported.
Freeport booked revenues of US$3.9 billion, equivalent Rp38 trillion, in 2012 and paid royalty of US$100 million in 2009.
Gold and copper reserves in Grasberg, Papua, according to Freeport Indonesia, will be wholly exploited by 2055. That’s why Freeport Indonesia proposes the contract extension. The contract is scheduled to mature in 2021.
Indonesia is the second world largest producer of nickel, third largest for tins, fifth largest for coal, and eigth largest for gold and copper.
Though gold production declined in 2012, but higher selling prices helped maintain gold miners’ revenues. Gold prices increased to US$1.664 per ounce last year. As of June 2013, Freeport Indonesia sold 153,000 ounces and 356 million pounds.