Antam ready to acquire Freeport shares

State-controlled mining firm PT Aneka Tambang Tbk (Antam) said that if appointed by the government, it was ready to acquire shares in gold and copper giant PT Freeport Indonesia which will be divested by the latter firm as part of its contractual obligation, Kontan reported on Tuesday.

The paper quoted Antam Corporate Secretary Tri Hartanto as saying that his company would team up with other investor to acquire the PT Freeport shares. ?If the government said (instructs) Antam to enter (into Freeport), like it or not, we?ll have to be ready,? Tri said.

PT Freeport, the local subsidiary of US Freeport McMoRan Copper & Gold Inc, reportedly has finally agreed to divest a total of 30 percent shares to domestic investor as part of its mining contract renegotiation with the government. According to the existing regulations, Freeport will first offer its shares to the government, before offering it to other domestic investors.

As the government currently holds more than 9 percent stake in PT Freeport, the company is obliged to only divest another 20.64 percent shares estimated to worth about US$1.78 billion that must be completed before its current contract expires in 2021, Kontan said. Freeport is expected to divest the first 10 percent stake in 2016. (*)