Freeport-McMoRan in talks on Grasberg copper mine environmental permit [UPDATE]

A new permitting issue has emerged at copper producer Freeport-McMoRan’s unit in Indonesia following the introduction of new environmental requirements in April, the United States-based firm said on Tuesday April 24.

The company is engaged in discussions with the country’s Ministry of Environment & Forestry regarding approval of pending environmental permits, as well as the new standards, which are subject to a six-month transition period.
According to Freeport, the new standards conflict with the currently approved environmental management programs of its subsidiary PT Freeport-Indonesia (PT-FI).
“Resolution of these matters is a requirement for concluding a comprehensive agreement for PT-FI’s extended operations,” the company added.
Freeport operates the Grasberg mine in Indonesia through PT-FI, of which it currently owns 90.64%, although it has agreed to a process that will see the group reduce its stake. Rio Tinto has a joint venture with Freeport for a 40% share of production from Grasberg above specific levels until 2021, and 40% of all production after 2021.
Grasberg is the world’s largest gold mine and second-largest copper mine.

The new standards being...

Published

Andrea Hotter

April 24, 2018

17:38 GMT

New York