Holding company seeks to acquire shares in PT Freeport

The government?s plan to set up a holding company for state-controlled mining companies includes the acquisition of 10.64 percent shares in gold and copper giant PT Freeport Indonesia.

This was revealed on Thursday by Winardi (one name), President Director of state-owned aluminum company PT Indonesia Asahan Aluminium (Inalum), which is said to become the holding company.

He said that the acquisition of shares to be divested by PT Freeport forms part of a roadmap currently being prepared. He added that one of the objectives of the creation of the holding company is to control mining assets particularly minerals in the country including through acquisition.

The Office of the State Minister of State Owned Enterprises plans to set up a holding company for state-controlled mining firms including Inalum, tin giant PT Timah Tbk, coal giant PT Bukit Asam Tbk, and mining firm PT Aneka Tambang Tbk.

PT Freeport, the local subsidiary of US giant Freeport McMoRan Copper & Gold Inc, plans to sell 10.64 percent shares to Indonesian investors as part of a mandatory divestment program. The company has put a price tag of US$1.7 billion for the stake, which is deemed too expensive by the government, who thinks the fair value is only about $630 million. Negotiation of the divestment price is still in progress. (*)