Freeport Indonesia considers IPO: report

The Indonesian subsidiary of US mining giant Freeport-McMoRan is considering launching an initial public offering (IPO), its head said in comments published Wednesday.

"We are considering several options, including an IPO," Freeport Indonesia president Rozik Soetjipto was quoted as telling the Jakarta Globe newspaper.

"The IPO would be good for Freeport Indonesia," he said, adding that it would make the company "more accountable and transparent." He did not specify details such as the timeframe or size of the sale.

US-based Freeport-McMoran Copper & Gold, which owns a 90.64 percent stake in the Indonesian subsidiary, would still have the final say on the matter, he added.

Soetjipto said Freeport, whose huge Grasberg mine in restive Papua province was hit by a violent strike last year, was focused on renegotiating its contracts ending in 2021 with the government, the report said.

Freeport Indonesia was not immediately available for comment about the report.

Indonesia in March announced a new law limiting foreign ownership in the mining sector from 80 percent to less than 50 percent, in a bid to protect abundant natural resources and keep a larger portion of revenues.

The regulation, which applies to new contracts only, obliges foreigners to divest at least 51 percent of their shares to Indonesians over a 10-year period.

It is not clear how the law may affect Freeport's Indonesian operation.

Indonesia, Southeast Asia's largest economy, has some of the world's biggest untapped mineral reserves, including tin, nickel, copper and gold.

Foreign direct investment in Indonesia hit a record $20 billion last year, with $3.6 billion attributed to the mining sector.

Freeport says it is the single biggest taxpayer to the Indonesian government.

Grasberg, the world's biggest gold and second-biggest copper mine, is Freeport Indonesia's only mine, employing more than 20,000 people.

A three-month strike over wages and work conditions last year turned violent, with at least eight people killed in ambush attacks and clashes with police. The strike ended in December.

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • Sadness, disappointment in Philippines after Pacquiao defeat
    Sadness, disappointment in Philippines after Pacquiao defeat

    MANILA, Philippines (AP) — Sadness and disappointment gripped Filipinos after Manny Pacquiao's defeat in his much-anticipated fight against American Floyd Mayweather Jr. but they still considered the boxing icon a national hero. …

  • Philippine rebels kill most wanted Islamist militant in south

    The Philippines' most wanted Islamist militant, who escaped after a raid in January that killed 44 police commandos, was killed on Sunday in firefight with Muslim rebels, officials said. Protracted police operations to arrest three Islamist high-value targets had become the biggest political crisis in five years for President Benigno Aquino and put at risk his government's peace efforts with Moro Islamic Liberation Front. A proposed law creating a new autonomous government for minority …

  • Disappointed Filipinos cry foul as Pacquiao loses
    Disappointed Filipinos cry foul as Pacquiao loses

    Boxing fans in the Philippines cried foul and groaned in bitter disappointment on Sunday as national hero Manny Pacquiao lost to American rival Floyd Mayweather in the "fight of the century". Filipinos filled gymnasiums, cinemas and bars as the Southeast Asian nation of 100 million people stopped for Pacquiao's battle with Mayweather in Las Vegas, which he lost in a unanimous points decision. A devastated Pacquiao said immediately afterwards that he thought he had won, and many at home agreed …

  • Steamy fight...and weather as well
    Steamy fight...and weather as well

    Filipinos who will flock to steamy public gymnasiums today to watch free live screenings of Manny Pacquiao’s fight with Floyd Mayweather Jr. are advised to drink lots of water as the heat index is expected to reach as high as 40 degrees Celsius in some parts of the country. The Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) said yesterday the forecast for heat index in Metro Manila may reach 39.8 degrees Celsius. It could go as high as 40.3 degrees …

  • POEA asks advertisers to help fight human trafficking
    POEA asks advertisers to help fight human trafficking

    The Philippine Overseas Employment Administration (POEA) has invited advertisers and public relations (PR) agencies to help combat illegal recruitment and human trafficking. POEA administrator Hans Leo Cacdac conveyed his invitation through his Twitter account @HansLeoCacdac posted last April 29. “Any ad agencies, PR firms or their industry associations interested in joining the campaign against illegal recruitment and human trafficking?” he said. Cacdac made the invitation to prevent …

  • Even soldiers will take a break today
    Even soldiers will take a break today

    It’s all systems go with the Armed Forces of the Philippines (AFP) live stream viewing of today’s fight between Filipino boxing icon Sarrangani Rep. Manny Pacquiao and  Floyd Mayweather Jr. in Las Vegas, Nevada. “Soldiers will take a break today,” said Lt. Col. Harold Cabunoc, AFP Public Affairs Office (PAO) chief, referring to military’s free-viewing event of the most awaited Pacquiao-Mayweather bout. The same preparations have already been done by the Philippine Army, Philippine Air Force, …

  • ‘No sign of Mount Bulusan’s imminent eruption’
    ‘No sign of Mount Bulusan’s imminent eruption’

    The government is on alert to ensure public safety as Mount Bulusan in Sorsogon province exploded on Friday, deputy presidential spokesperson Abigail Valte said yesterday. Despite the alert, Valte said there is as yet no need to evacuate residents, with the Philippine Institute of Volcanology and Seismology (Phivolcs) reporting that “there is no threat of imminent eruption” and that the volcano remains at Alert Level 0. The National Disaster Risk Reduction and Management Council (NDRRMC), …

  • Pinoys roar: We’re ready to rumble
    Pinoys roar: We’re ready to rumble

    People’s champion Manny Pacquiao knows that the presence of God and the prayers of an entire nation are with him as he wages the biggest battle of his career against undefeated Floyd Mayweather Jr. Saturday here (Sunday noon in the Philippines). “I said thank you,” said Pacquiao. …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options