Freeport Officially Applies for Mining Licence Extension Beyond 2041

Freeport-McMoRan (FCX) has disclosed that PT Freeport Indonesia (PTFI) submitted an application for an extension of its Special Mining Business Licence (IUPK) to the Indonesian government in June 2026. The application was made to ensure the continuation of the company’s mining operations, which are currently set to expire in 2041. President and Chief Executive Officer of FCX, Kathleen Quirk, stated that the company is engaged in intensive communication with the Indonesian government to complete the entire licence extension process. She emphasised that this commitment is part of a strategy for sustainable mineral resource development in Indonesia. “In June 2026, PTFI submitted an application for an extension of its IUPK, and FCX and PTFI are working with the Government of Indonesia to complete the formal licensing process,” the company wrote in its second-quarter 2026 financial report, cited on Tuesday. The application follows a Memorandum of Understanding (MoU) signed between Freeport and the Indonesian government in February 2026. The agreement covers plans to extend operational rights in line with the life of the mineral resources in the mining area. “The extension will enable the continuation of large-scale operations for the benefit of all stakeholders and provide growth options through additional resource development opportunities in the highly prospective Grasberg district,” FCX stated in the report. Under the agreed MoU, FCX’s shareholding structure in PTFI will change in 2042 or after 2041. FCX aims to maintain a 48.76% stake until 2041, after which its ownership in PTFI will be reduced to approximately 37% starting in 2042. “The existing governance and operational structure, as well as the provisions of the existing shareholders’ agreement, IUPK, and other applicable agreements, will continue throughout the life of the resource,” the FCX report added. With the IUPK extension application, the company hopes to continue providing added value to the national economy through gold and copper production activities. The company is committed to complying with all regulations and procedures set by the government to ensure a smooth operational transition in the future. The certainty of the PTFI IUPK extension was previously agreed upon through the signing of a Memorandum of Understanding between the Indonesian government, Freeport-McMoRan, and PT Freeport Indonesia in Washington DC, United States, on Wednesday, 18 February 2026. The plan states that the PTFI IUPK extension will be applied for the entire life of the mine’s resources. Key points in the MoU include: the IUPK will be amended to provide an extension of resource operating rights; PTFI will increase support for communities in Papua, including financial support for a new hospital and two medical education facilities; PTFI will increase exploration spending and advanced studies to identify and develop long-term resources and expansion opportunities; PTFI will continue to prioritise domestic downstream processing through local sales of processed copper, precious metals, sulphuric acid, and other products, and will also be positioned to expand marketing of its processed copper to the United States under market terms if the US requires additional copper supply; in 2041, FCX will transfer 12% of its shares in PTFI to the Indonesian government at no cost, provided the acquirer reimburses FCX’s pro-rata costs incurred at book value for investments benefiting the post-2041 period, with FCX retaining 48.76% ownership until 2041 and holding approximately 37% from 2042 onwards; and the existing governance and operational structure, along with the provisions of the current shareholders’ agreement, IUPK, and other applicable agreements, will continue for the life of the resource. FCX Chairman Richard Adkerson and President and CEO Kathleen Quirk expressed appreciation for the long-term partnership with the Indonesian government. They affirmed that the licence extension would provide opportunities to continue building substantial value for all stakeholders. “Grasberg operations have delivered substantial benefits to all stakeholders over their six-decade history, and this extension will provide the opportunity to continue building substantial value for all stakeholders in one of the world’s most significant copper and gold deposits,” they stated. PTFI confirmed that the extension of operating rights and other provisions have been agreed upon, subject to the issuance of a revised IUPK by the Indonesian government, and the company plans to complete the extension application process promptly in accordance with the approved requirements.