Flooring Guide by Cinvex – , JAKARTA — PT Freeport Indonesia (PTFI) is urgently pushing for the accelerated signing of an agreement for an additional 12% share divestment to Indonesia. This move is crucial for the company to secure the certainty of its Special Mining Business Permit (IUPK) extension beyond 2041, a vital step for its long-term operational stability.
Tony Wenas, President Director of PTFI, revealed that as of now, there is no written contract formalizing the understanding regarding the share divestment plan between the Indonesian government and PTFI’s parent company, Freeport-McMoRan Inc (FCX).
“In line with discussions with the government, the understanding is that this mining operation can be extended under existing regulations, specifically for the ‘life of mine’,” Tony clarified during a hearing with Commission VI of the House of Representatives (DPR RI) on Monday, November 24, 2025.
While the additional shares for Indonesia are slated to be granted only after 2041, Tony emphasized the critical need for the divestment process to be formalized or contractually confirmed immediately. This upfront commitment is paramount for PTFI’s operational planning and future investments.
Freeport’s urgency stems from the extensive timeframe required for continuous exploration activities. Securing the certainty of the mining contract extension is essential to prevent resource depletion following prolonged exploitation. Without this assurance, PTFI faces significant challenges in planning and executing the necessary geological surveys.
“The sooner the commitment for certainty, the better, so we can commence exploration,” Tony explained. He detailed the lengthy process involved: “Detailed exploration takes 3-4 years, followed by design engineering for another 3-4 years, and then a feasibility study spanning 3-4 years.” This underscores the need for a stable long-term outlook to facilitate such substantial preparatory work.
Furthermore, Freeport requires ample time to develop extensive mine tunnel networks, which are crucial for accessing new potential reserves. This infrastructure development is an integral part of sustaining production and extending the mine’s operational life.
Tony reiterated, “Essentially, the sooner, the better, to avoid depletion as we approach production levels consistent with our current IUPK in 2041.” This highlights the strategic importance of prompt action to maintain continuous operations and avoid a gap in production.
Previously, Freeport-McMoRan Inc. (FCX) had confirmed its intent to divest an additional 12% stake in PT Freeport Indonesia (PTFI) to the Indonesian party. This corporate action is a prerequisite for obtaining the extension of PTFI’s Special Mining Business Permit (IUPK) beyond 2041, cementing a path for continued operations.
The US-based parent company of PTFI indicated that its ownership in PTFI would decrease to 37% after 2041, reflecting Indonesia’s increased stake in the strategic mining asset.
“FCX is expected to retain approximately 49% ownership until 2041, and thereafter will hold approximately 37% ownership,” stated Kathleen Quirk, President and Chief Executive Officer of FCX, in an official statement quoted on Friday, October 24, 2025. Her remarks provide a clear outline of the future ownership structure.
FCX further stressed that the existing governance agreements would remain in effect throughout the entire operational life of the mine, ensuring continuity and stability in management and operations.
In light of these developments, FCX confirmed that PTFI is actively preparing a formal application for a long-term permit extension. This extension is designed to cover the full resource life of the Grasberg mine, a world-class copper and gold operation. The submission of this crucial application is anticipated in the fourth quarter of 2025.
“In connection with this extension, PTFI plans to continue exploration, conduct studies for additional future development, and expand its social programs,” Quirk concluded, outlining PTFI’s commitment to sustainable growth and community engagement alongside its operational advancements.
Summary
PT Freeport Indonesia (PTFI) is urgently pushing for the accelerated formalization of an agreement to divest an additional 12% share to Indonesia. This commitment is crucial for securing the certainty of its Special Mining Business Permit (IUPK) extension beyond 2041, which is vital for long-term operational stability and future investments. PTFI emphasizes that upfront assurance is needed to plan extensive multi-year exploration, design engineering, and feasibility studies. Prompt action is essential to prevent resource depletion and maintain continuous production.
Freeport-McMoRan Inc. (FCX) has confirmed its intent to complete this additional 12% stake divestiture, a prerequisite for the IUPK extension, which will reduce FCX’s ownership in PTFI to approximately 37% after 2041. PTFI is actively preparing a formal application for a long-term permit extension to cover the full resource life of the Grasberg mine, with submission anticipated in Q4 2025. This plan includes continued exploration, studies for future development, and expanded social programs.