Papua bids to buy 9.35 percent stake in Freeport for $700 million

The administration of Papua province has notified the central government that it is ready to buy a 9.35 percent stake in PT Freeport Indonesia for US$700 million, the Bisnis Indonesia newspaper reported in its Tuesday edition.

Papua Governor J.P. Salossa said his administration is capable of buying the shares.

?I have sent a letter to Minister of Energy and Mineral Resources Purnomo Yusgiantoro, ? Salossa said in Jakarta on Monday after meeting with President Susilo Bambang Yudhoyono.

While admitting $700 million was a huge amount, he said the provincial administration would work with a foreign investor to purchase the stake on a business to business basis.

He did not disclose details about the foreign investor.

The 9.35 percent stake in Freeport Indonesia belongs to PT Indocopper Investama.

New Orleans-based gold and copper mining giant Freeport-McMoRan Copper & Gold Inc, the majority owner of both Freeport and Indocopper, is planning to sell its stake in Indocopper to the government or a national company.

Initially, Freeport McMoRan wanted to merge Freeport Indonesia with Indocopper. However, the plan was rejected by the government. (*)