Minister hopes to conclude valuation of PT Freeport shares next year

By Thomas Sembiring

Petromindo|Dasir

State Minister of State Owned Enterprises Rini Soemano said on Wednesday that the government hopes valuation of PT Freeport Indonesia shares can be concluded in December of 2018.

Rini said that the government is currently in the process of negotiation with the gold and copper giant over the share valuation method. ?We?re preparing the timing (of the divestment) and the share valuation,? she said.

PT Freeport, a subsidiary of US Freeport McMoRan Inc, has recently agreed to divest up to 51 percent shares to Indonesian investors as part of an overall conditions for the company to be able to continue export of copper concentrates and ensure its future mining operations at the Grasberg mine in Papua Province. The company, however, is still in negotiation with the government over the share valuation and the timing of the divestment.

The government currently holds a 9.36 percent interest in PT Freeport, which means the company will have to divest another 41.64 percent shares.

The government has said it will appoint state-owned enterprise to acquire the PT Freeport shares.

Rini said that preparations are ongoing to realize the ministry?s plan to create a holding company for state-owned or controlled mining firms. State-owned aluminum maker PT Indonesia Asahan Aluminium is being prepared to become the holding company, which will acquire the PT Freeport shares.

Editing by Reiner Simanjuntak