Freeport-Indocopper merger to be decided this month

The decision whether or not the government will approve the merger plan of PT Freeport Indonesia and PT Indocopper Investama will be decided within the next two weeks, Bisnis Indonesia reported on Friday.

“The study on the proposal of the Freeport and Indocopper merger plan had been completed but I have not yet received the report. I have asked the team to announce the decision within the next two weeks,” said Director General of Geology and Mineral Resources Simon Felix Sembiring.

Whatever decision to be made, it would not cause a loss to the government and Freeport, he said, adding that the merger plan could be approved, with a certain condition, or without condition.

Earlier the Commission VIII of the House of Representatives (DPR) had formally asked the ministry of energy and mineral resources not to approve the merger plan, which would further strengthen Freeport McMorran’s dominance in the gold and copper mining company.

Freeport is waiting for the government’s approval for its merger with Indocopper, which was previously controlled by former president Soeharto’s golf buddy Bob Hasan.

Bob Hasan recently sold Indocopper which owned 9.36 percent stake in Freeport Indonesia to Freeport McMorran, the majority shareholder of Freeport Indonesia. As part of its business consolidation, Freeport McMorran planned to merge Indocopper into Freeport Indonesia. This will increase its ownership in the world’s copper and gold giant to 90.64 percent from 81.6 percent at present. The remaining 9.6 percent are held by the Indonesian government. (*)