Govt hints it may allow Freeport-McMoRan to buy more stake in Freeport Indonesia
Friday, January 9 2004 - 01:35 AM WIB
Director-General of geology and mineral resources Simon Sembiring said that the government will approve the purchase of 9.36 percent shares of PT Freeport Indonesia by the American copper and gold mining giant from PT Indocopper Investama. After this deal, Freeport-McMoRan will have 90.64 percent stake in PT Freeport Indonesia.
?The decision will be made public within one or two weeks. Currently, energy ministry (ministry of energy and mineral resources) is studying the technicalities of government order,? Simon told Koran Tempo in Jakarta on Thursday.
Ministry of energy and mineral resources has already forwarded the request of Freeport-McMoran to the ministry of finance and recently the ministry of finance has said it has no objection to the deal.
However, meanwhile, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said government is presently discussing this matter.
?Still it (Freeport-McMoRan?s proposal) is being discussed at the staff level and has not yet reached my table,? Purnomo said.
He also added: There is no final decision until now.?
Actually, Freeport-McMoRan had asked early last year for government?s approval for its plan to buy Indocopper?s stake in Freeport Indonesia. Since the government has not yet made a decision on this matter, PT Freeport has delayed its annual 2002 shareholders meeting.
As per Law No. 1/1995, companies must hold annual shareholders meeting no later than six months after their book-year ends.
As a result, government, as a shareholder, has not yet received its dividend from PT Freeport Indonesia for the year 2002.
Government has 9.36 percent ownership in PT Freeport Indonesia. PT Freeport Indonesia paid Rp 38.2 billion in dividend to the government in 2001. (*)