Flooring Guide by Cinvex – , JAKARTA — Freeport-McMoRan Inc. (FCX) has officially confirmed its commitment to divest an additional 12% stake in PT Freeport Indonesia (PTFI) to Indonesian entities. This significant corporate action is a prerequisite for securing the extension of PTFI’s Special Mining Business Permit (IUPK) beyond 2041, ensuring the continuity of its large-scale mining operations.
The U.S.-based parent company of PTFI indicated that its ownership in PTFI is set to decrease significantly. “FCX is expected to retain approximately 49% ownership until 2041, and subsequently hold around 37% ownership after 2041,” stated Kathleen Quirk, President and Chief Executive Officer of FCX, in an official statement quoted on Friday, October 24, 2025.
FCX further emphasized that the existing robust governance agreements will remain in full effect throughout the entire operational lifespan of the mine, providing stability and clear operational frameworks. Concurrently, PTFI is actively preparing its formal application for this long-term permit extension, which is designed to cover the full economic life of the Grasberg mine’s vast resources. This crucial submission is anticipated to take place in the fourth quarter of 2025.
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As part of these extension plans, Quirk highlighted PTFI’s commitment to continued exploration activities, undertaking comprehensive studies for future development opportunities, and expanding its impactful social programs within the local communities. This strategic planning coincides with the anticipated completion of PTFI’s downstream processing facility, or smelter, which is targeted for 2025.
The extension is deemed vital for sustaining the extensive scale of mining operations and delivering substantial benefits to all involved stakeholders. Quirk elaborated, “The extension will enable the continuation of large-scale operations for the benefit of all stakeholders and present compelling growth options through additional resource development opportunities within the highly prospective Grasberg mineral district.”
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Previously, Rosan Perkasa Roeslani, CEO of Danantara, had affirmed that the agreement for the additional 12% share divestment in Freeport Indonesia to the government was on the verge of being signed. Rosan noted that while preparations for the signing were ongoing, the Indonesian government had successfully secured a principal agreement with Freeport, following extensive negotiations.
“What we negotiated is largely concluded. Now it’s just a matter of reviewing the draft details, but the principal agreement has been achieved,” he informed reporters on the sidelines of the Investor Daily Summit at the Jakarta International Convention Center (JICC) on Wednesday, October 8, 2025. This 12% share divestment is, as noted, a pivotal condition for the company, jointly owned by Indonesia and Freeport-McMoRan Inc., to obtain its IUPK extension beyond 2041.
Rosan also confirmed that the “free of charge” nature of the share divestment agreement was the direct outcome of approximately six months of meticulous negotiations between the government and Freeport-McMoRan, which have now been finalized. This additional stake is poised to significantly strengthen Indonesia’s position in the ownership structure of PT Freeport Indonesia. Following the initial divestment in 2018, Indonesia already held a dominant 51.2% stake in the giant gold and copper mining company through Inalum (MIND ID). With this additional divestment, specifically an approximate 10% increase, MIND ID’s shareholding in PTFI is projected to rise to about 63.2%.
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Summary
Freeport-McMoRan Inc. (FCX) has officially committed to divesting an additional 12% stake in PT Freeport Indonesia (PTFI) to Indonesian entities. This divestment is a prerequisite for securing the extension of PTFI’s Special Mining Business Permit (IUPK) beyond 2041, ensuring continuity of its large-scale mining operations. Consequently, FCX’s ownership in PTFI is projected to decrease to approximately 49% until 2041 and then to about 37% thereafter. The “free of charge” divestment agreement has largely been concluded following extensive negotiations.
PTFI is preparing its formal application for this long-term permit extension, expected in the fourth quarter of 2025, to cover the full economic life of the Grasberg mine. This extension is crucial for sustaining operations, enabling future exploration, resource development, and expanding social programs. The additional 12% stake will increase Indonesia’s (MIND ID’s) ownership in PTFI from 51.2% to approximately 63.2%. Additionally, PTFI’s downstream processing facility, or smelter, is targeted for completion in 2025.