Govt turns down offer to buy 10% of Freeport shares

Director General of Geology and Mineral Resources of the Ministry of Energy and Mineral Resources Simon F. Sembiring said that the Ministry of Finance had sent an official letter rejecting the offer to buy 10 percent of gold mine giant Freeport Indonesia's shares.

Speaking to reporters on Wednesday, Sembiring said that the Ministry of Finance could not take the offer to buy Freeport's shares due to lack of funds. "The Ministry has asked us to accommodate the interest of the Papua government and state owned firms to buy the shares," he said.

Freeport Indonesia offered the government to buy 10 percent of its shares worth about US$619 million as part of its mandatory divestment program. Under the program, the shares to be divested should be first offered to the government. If the government refuses the offer, the priority to buy the shares is given to state firms or local government. Private companies can buy the shares only after both the government and state firms turn the offer.

Sembiring said that state owned mining company PT Aneka Tambang (Antam) and the Papua government had expressed their interest to buy the 10 shares to be divested by Freeport.

"But if Antam really wants to buy the shares, it should first discuss the plan with the Ministry of Finance," he said. (godang)