JAKARTA, Dec.21 (JDN.id) –Indonesian President Joko Widodo on Friday announced the final process of taking over majority stakes of the world’s second largest cooper mine Grasberg in Papua, owned by US mining giant Freeport McMoran, by state owned firm Inalum, worth $3.85 billion.
The finalization of the deal ended the country long waiting for almost 50 years to secure more stakes from the entity since the US company through its local subsidiary Freeport Indonesia started running its business Papua in early 1970s. Indonesia was only owned 9.36 percent stakes previously.
“I have received a report from all related ministers, CEOs of Inalum and Freeport McMoran. It’s said that 51.2 percent of Freeport’s stakes has been transferred to Inalum and it has been paid off,” President Widodo said.
It needed two years to reach the historical step of finalizing the devastation process.
“This majority ownership will be used by us for the greatest prosperity of the people,” he said.
All obstacles of the process such as in relation with environmental and smelter issues have been agreed, the president said.
Moreover, President Widodo ensured that all benefits either from royalty or tax to be increased.
“The people of Papua will get 10 percent of the stakes,” he added.