Freeport not aware of Irian Jaya's plans to acquire shares
Thursday, January 25 2001 - 04:30 AM WIB
The gold giant mining company in Irian Jaya province has been unaware of the plans of the local administration to acquire shares in the company.
"We have never hold any discussion on the matter," senior manager corporate communications Sidharta Moersjid was quoted by Tempo Interaktif online as saying.
"There has been no such formal demand (to acquire Freeport shares) from the local administration," he added.
Irian Jaya Governor Jaap Salossa revealed recently of his administration's plans to acquire stake in Freeport following the implementation of the regional autonomy law, which provides provinces and regencies greater power in managing their own economic and social affairs.
He said that the financing for the acquisition could come either from foreign loans or from the autonomy fund allocated by the central government to each region. He said that this was still being discussed with the local House of Representatives.
Director general of mining Surna T. Tjahjadiningrat welcome the plans of the Irian Jaya government to acquire shares in Freeport. He said that even the central government owns a stake in the company.
Freeport is currently 81.27 percent controlled by U.S. Freeport McMoran Copper and Gold. The government owns a 9.4 percent stake in the company, and another 9.4 percent owned by PT Indocopper Investama.
Freeport currently provides the Irian Jaya administration with a royalty amounting to 1 percent of its profit. (*)