Freeport Mining Contract Extended to 2041, Government Stake to Increase by 12 Per Cent
JAKARTA — United States mining company Freeport-McMoRan has formally agreed to extend the operating rights of PT Freeport Indonesia (PTFI) in Papua until 2041.
The agreement was set out in a Memorandum of Understanding (MoU) signed jointly with the Indonesian Government on 18 February 2026 in Washington, D.C., United States.
The MoU was signed by Investment and Downstream Industries Minister/BKPM Head Rosan Roeslani, Freeport-McMoRan Inc. President and CEO Kathleen Quirk, and PTFI President Director Tony Wenas.
The signing was witnessed in person by President of the Republic of Indonesia Prabowo Subianto.
Under the agreement, the parties agreed to amend the Special Mining Business Permit (IUPK) to ensure the continuity of Grasberg mine operations until mineral reserves are exhausted.
As part of the new commitments, PTFI will also increase its social contributions in Papua, including through the construction of a new hospital and two medical education facilities, whilst strengthening exploration budgets for long-term resource development.
Freeport-McMoRan Chairman of the Board Richard C. Adkerson stated that the contract extension represents a testament to the trust and long-term partnership between Freeport, the Indonesian government, and the Papuan community that has been forged over more than six decades.
“The Grasberg operations have delivered significant benefits to all stakeholders. This extension opens the door to continue creating added value from one of the world’s largest copper and gold reserves,” Adkerson said in an official statement.
On the equity front, Freeport has agreed to transfer 12 per cent of PTFI shares to the Indonesian Government in 2041 at no cost.
Under this arrangement, Freeport’s current 48.76 per cent stake will be diluted to approximately 37 per cent from 2042 onwards.
Meanwhile, the Indonesian Government, which currently holds 51.2 per cent of shares through MIND ID, will see its ownership increase to approximately 63 per cent.
Additionally, PTFI has committed to prioritising domestic downstream processing through the sale of refined copper and precious metals on the domestic market, whilst still allowing for exports to the United States in accordance with market mechanisms.
The next stage of the agreement involves the completion of formal administrative processes, including the submission of an official extension application by PTFI so that the government can issue the IUPK amendment.
The agreement is regarded as an important milestone for the national mining industry, as it provides long-term investment certainty whilst strengthening Indonesia’s position in the global copper supply chain.
President Prabowo Subianto affirmed that Indonesia seeks the best possible relationship with the United States, in both political and economic spheres, including in trade and investment cooperation.