PT Freeport Indonesia (PTFI) will receive an extension of mining\noperating rights in the Grasberg mineral district for the full life of\nthe resource after Freeport-McMoRan Inc (NYSE: FCX) and the Indonesian\ngovernment signed a memorandum of understanding (MoU) in Washington,\nD.C. on 18 February 2026.<\/p>\n
Under the agreement, PTFI\u2019s Special Mining Business Licence (IUPK)\nwill be amended to provide an extension of operational rights beyond the\ncurrent expiry in 2041, continuing until the mine\u2019s reserves are fully\ndepleted.<\/p>\n
As part of the key terms, FCX will transfer 12 per cent of PTFI\nshares to government interests in 2041 at no cost. The recipient entity\nwill replace proportional costs based on book value for investments that\nprovide benefits beyond 2041. FCX will maintain 48.76 per cent ownership\nof PTFI until 2041, with its stake reducing to approximately 37 per cent\nfrom 2042 onwards.<\/p>\n
PTFI has committed to increasing support for Papuan communities,\nincluding funding for one new hospital and two medical education\nfacilities. The company will also increase exploration spending and\ncontinue long-term resource development studies and expansion\nopportunities at the Grasberg mineral district.<\/p>\n
In terms of economic projections, government revenue from the\noperation is estimated at approximately US$6 billion, or Rp90 trillion\nper year, based on current commodity price assumptions. This includes\napproximately Rp14 trillion allocated to local government. The agreement\nis also expected to sustain approximately 30,000 jobs and community\ndevelopment programmes worth approximately Rp2 trillion per year.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/freeport-and-government-agree-to-extend-grasberg-operating-rights-until-reserves-are-depleted-1771628879", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }