Freeport McMoRan to Divest 12 Percent Stake to Indonesia from 2041

American mining company Freeport-McMoRan (FCX) has agreed to transfer 12 percent of its shares in PT Freeport Indonesia to the Indonesian government starting in 2041. The agreement is set out in a memorandum of understanding signed in February 2026 as part of the process of extending the special mining business permit (IUPK).

President Director of PT Freeport Indonesia, Tony Wenas, said the share transfer process would proceed without a conventional sale mechanism. “There will be a further 12 percent divestment signed now to take effect in 2041. There is no sale and purchase involved,” Tony Wenas said.

The share transfer will change FCX’s ownership structure in PTFI, which currently stands at 48.76 percent until 2041, to around 37 percent from 2042.

“FCX will transfer 12 percent of its shares in PTFI to the government in 2041 at no cost, provided the acquiring party reimburses FCX’s pro-rata costs using book value for investments benefiting the period after 2041,” Freeport said in an official statement.

PTFI considers the continuation of the IUPK extension, submitted to the Ministry of Energy and Mineral Resources in mid-June 2026, crucial to ensuring operational stability at the mine in Tembagapura, Central Papua, whose permit will expire in 2041.

Tony added that halting mining operations in 2041 could cost the state hundreds of trillions of rupiah and directly affect around 30,000 workers.

“The point is that if the mine stops in 2041, no one benefits. The government also loses, as there would be no more revenue from Freeport. The 30,000 employees would also be gone. Our community development programmes would also cease. So if it is extended, all parties benefit,” Tony Wenas said.