Freeport and Government Agree to Extend Grasberg Operating Rights Until Reserves Are Depleted

PT Freeport Indonesia (PTFI) will receive an extension of mining operating rights in the Grasberg mineral district for the full life of the resource after Freeport-McMoRan Inc (NYSE: FCX) and the Indonesian government signed a memorandum of understanding (MoU) in Washington, D.C. on 18 February 2026.

Under the agreement, PTFI’s Special Mining Business Licence (IUPK) will be amended to provide an extension of operational rights beyond the current expiry in 2041, continuing until the mine’s reserves are fully depleted.

As part of the key terms, FCX will transfer 12 per cent of PTFI shares to government interests in 2041 at no cost. The recipient entity will replace proportional costs based on book value for investments that provide benefits beyond 2041. FCX will maintain 48.76 per cent ownership of PTFI until 2041, with its stake reducing to approximately 37 per cent from 2042 onwards.

PTFI has committed to increasing support for Papuan communities, including funding for one new hospital and two medical education facilities. The company will also increase exploration spending and continue long-term resource development studies and expansion opportunities at the Grasberg mineral district.

In terms of economic projections, government revenue from the operation is estimated at approximately US$6 billion, or Rp90 trillion per year, based on current commodity price assumptions. This includes approximately Rp14 trillion allocated to local government. The agreement is also expected to sustain approximately 30,000 jobs and community development programmes worth approximately Rp2 trillion per year.