Govt waits for Papua administration to decide on Freeport?s stake

The central government is still waiting for the Papua provincial administration to decide on the stake sale offer from copper and gold company PT Freeport Indonesia, Investor Daily reported on Thursday.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said on Wednesday that Papua?s governor Barnabas Suebu had voiced the province?s interest to buy the 9.36 percent stake in the company, but the province had yet to officially issue a letter confirming the intention to buy the stake.

PT Freeport Indonesia, which operates a huge copper and gold mine in Papua, is the subsidiary of American mining giant Freeport McMoRan Copper & Gold. The American company is seeking to buy American copper giant producer Phelps Dodge.

It has offered the central government to buy the 9.36 percent stake in the company but it declined the offer citing the lack of funds. The central government then offered the stake to the Papua provincial administration.

Purnomo said if Papua was not interested to buy the stake, the central government would hold a national tender to offer the stake. (*)