Local investors invited to buy Freeport shares in Indocopper

Local investors will be given the first priority to take over the ownership of Freeport McMoran Copper and Gold (FCX) in PT Indocoper Investama if the ministry of finance does not use its preemptive rights to buy the shares, the ministry of energy and mineral resources said in Jakarta.

Director General of Geology and Mineral Resources, Simon Sembiring, said that the sales of FCX's shares in Indocopper would be carried in six months of 180 days. "We hope the sales will not be carried out through the stock market but through a tender," he said as reported by Suara Karya on Tuesday.

PT Freeport Indonesia's spokesman said last week that the company had agreed with the government's proposal to sell FCX's interest in Indocopper, which owns 9.4 percent of Freeport. He said that the company also accepted the government's rejection of the company's proposal to merge Indocopper with McMoran.

At present, FCX owns 81.3 percent shares in Freeport. Indocopper and the government, which represents the national interest, own 9.4 percent, respectively in the gold giant. FCX, which owns the entire stake of Indocopper proposed to merge Indocopper into its business entity as part of its corporate restructuring.

The merger plan has, however, provoked controversies in the public. Mining observers have said that the merger, which would increase FCX's ownership in Freeport to 90.64 percent, would further strengthen the dominance of the company in the gold and copper giant. (*)