Freeport Expects to Reach Indonesia Export Deal

After years of fighting with the Indonesian government, Freeport McMoRan Inc. is set to resume exportation of semi-processed copper for the next six months. This will give time for negotiation of the new permit after revocation of the former one in unclear circumstances.

The Indonesian Authorities were working on developing a new license that will see the company resume exportation of the mineral permanently. This will alleviate the supply of copper after the strike in Peru and Chile as well as have positive impacts on the country’s economy. The contract of work is set to come to its end in 2021.

The talks had gone sore in January when the government announced the introduction of special mining licenses for foreign companies that will require them to sell much as half of the stakes to locals. They were also required to fully process the copper before exportation as part of a hardline push to develop its local smelter industry.


The Phoenix-based company had drawn a line on the new policy in January with conditions of a long-term agreement. This made the government suspend Freeport license in which they retaliated by laying down some of its workers and shutting its mine. They also issued a threat of arbitration if the talks didn’t proceed to the expectation.

The two parties were confident to retain an advantage on the CoW. The government insisted on 51 percent local ownership and a smelter while Freeport wanted long-term rights and interests citing support from the US government as well as their partner Rio Tinto.

Ultimately, both sides have a tremendous incentive to find a good solution. If the talks do not bear an outcome, Freeman would rather settle on selling the Grasberg mines to the government or third parties.