Papua awaits govt's approval to buy Freeport's shares

Papua provincial government is waiting for an approval from the ministry of finance to realize its plan to take over 9.36 percent share of Freeport currently held by Indocopper Investama for about US$700 million, Investor Daily reported on Thursday.

Director General of Mineral at the Ministry of Energy and Mineral Resources, Simon Felix Sembiring, said in Jakarta on Wednesday that the Ministry of Finance would soon summon Papua Governor J.P. Solassa to find out if the Papua government was really serious about buying Indocopper's 9.6 percent share in Freeport.

"It is up to the Ministry of Finance to decide. We have told the ministry about Papua's plan but the ministry still need confirmation whether or not Papua has enough money to buy the shares," he said.

Papua provincial administration had earlier said that it had reached an initial agreement with Indocopper to buy the latter's shares in Freeport, one of the world's largest gold mining companies.

Papua's governor Solassa said that at least five local investors had expressed their intention to provide financial supports to take over Incopper's 9.36 percent share in Freeport. (*)