Freeport Will Divest 12% of Local Arm to Indonesia, CNBC Says

Core Points - Freeport-McMoRan Inc. has agreed to divest a 12% share in its Indonesian unit to the government for free as part of a deal to extend its operating license for the Grasberg copper mine past 2041 [1][2] - The Indonesian government already owns a 51% share of PT Freeport Indonesia following a previous divestment agreement in 2018 [3] - The Grasberg mine has faced operational challenges, including a production halt in 2017 due to government export bans and recent flooding incidents that led to a force majeure declaration [4] Group 1 - The divestment of the 12% share is part of an agreement to extend Freeport's license to operate the Grasberg mine beyond 2041 [2] - The CEO of Freeport, Kathleen Quirk, agreed to grant the shares to Indonesia during a meeting with the head of the Danantara sovereign wealth fund [2] - The Indonesian government currently holds a 51% stake in PT Freeport Indonesia, which was established through a prior divestment agreement in 2018 [3] Group 2 - The Grasberg mine, the world's second-largest copper mine, has experienced significant operational disruptions, including a production halt in 2017 due to government regulations [4] - Recent flooding at the Grasberg mine resulted in a force majeure declaration and a reduction in production guidance for the current and next year [4] - The company has faced challenges related to tax rates and waste management in negotiations with the Indonesian government [3]