Govt not selling stake at Freeport: Aburizal

Government will not sell its 9.36 percent stake in the local unit of U.S.-based Freeport McMoRan Copper and Gold Inc. , a senior government minister said on Tuesday.

State nickel miner PT Aneka Tambang Tbk (Antam) had appointed HSBC as the financial adviser for its plan to acquire nearly 19 percent of PT Freeport Indonesia.

"There are reports that have said the government will sell its stake in Freeport. That is not true. The government will not sell its stake," chief economics minister Aburizal Bakrie told reporters.

"If Antam is to buy a Freeport stake from another firm they can, but not the government stake," Bakrie added.

Antam has said it is considering issuing shares to finance a $700 million bid for at least 9.36 percent stake in Freeport Indonesia and prioritizing to buy sahres that are held by the government. Another 9.36 percent stake in PT.Freeport Indonesia is held by PT. Indocopper Investama, which is 100 percent controlled by Freeport McMoRan. Freeport took over Indocopper Investama after former owner Tycoon Bob Hasan failed to meet its financial obligation, but the government orders Freeport to sell the shares back to Indonesian-owned company.

Freeport operates the world's second-largest copper ang gold mine in Papua.(*)