Jakarta: President Joko "Jokowi" Widodo on Thursday confirmed that state-owned mining holding company PT Inalum has reached an initial agreement with Unites States mining firm Freeport-McMoran Inc regarding the ownership of Grasberg copper and gold mine.
The Grasberg mine is well known as the largest gold mine and the second largest copper mine in the world. It is located near Puncak Jaya mountain in the province of Papua.
Freeport-Mcmoran operates the giant mine through its subsidiary PT Freeport Indonesia. It markets concentrates containing copper, gold and silver all over the world.
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"Inalum has reached an initial agreement with Freeport to acquire 51 percent stake," Jokowi said.
Freeport-McMoran currently owns 90.64% of PT Freeport Indonesia, while the Indonesian government only owns 9.36 percent of the company.
"We should prioritize our national interest to distribute welfare from our mining resources," he added.