Shareholders approve Freeport Indonesia's merger plan: Officials

The Ministry of Mineral Resources and Energy said that a general shareholders meeting of PT Freeport Indonesia to approve the planned merger of the giant gold and copper mining with its subsidiary PT Indocopper Investama has been implemented, the Koran Tempo daily reported on Friday.

The paper clarified its earlier report on Thursday, which said Freeport failed to hold the shareholders meeting.

Director for coal and mineral resources at the Directorate General of Geology and Mineral Resources Mahyuddin Lubis said shareholders of Freeport had approved the merger plan during a shareholders meeting on April 13, and had signed the agreement on the following day.

"All have agreed including representatives from the government," Mahyuddin said.

Freeport Indonesia spokesperson Siddharta Moersjid also said that the shareholders had approved the proposed merger at the April 13 meeting.

But Mahyuddin said that the result of the shareholders meeting had yet to be approved by the Ministry of Mineral Resources and Energy.

Freeport planned to merge with Indocopper in order to improve efficiency within the company’s operation. Both Freeport and Indocopper are owned by the United States-based Freeport McMoRan.

At present Freeport is owned by Freeport McMoRan (81.28%), the Indonesian government (9.36 percent) and Indocopper (9.36 percent). After the merger, the share ownership composition will changes with Freeport McMoRan owning 90.64 percent and the Indonesian government (9.36 percent). (*)