Tue, 16 Aug 1994

Freeport sells equity to subsidiaries

JAKARTA (JP): PT Freeport Indonesia, a U.S.-Indonesian copper mining venture, has sold its equity in a four-star hotel and several multi-family residential properties in Irian Jaya to its subsidiaries, the company said here yesterday.

Roswita Nimpuno Khaiyath, a spokeswoman for Freeport, one of the biggest mining firms in the world, said that her company sold its Sheraton Inn Timika hotel to PT ALatief Freeport Hotel Company, a joint venture owned by Freeport Indonesia and ALatief Corporation.

ALatief Corporation, a Rp 1.2 trillion (US$571 million) company owned by the Minister of Manpower Abdul Latief, controls two thirds of the joint-venture and Freeport the other one third.

Roswita said Freeport also sold several residential properties to PT ALatief Freeport Infrastructure Company, which is also a joint venture two-thirds owned by ALatief Corporation and one- third by the mining company.

A reliable source at Freeport, who requested anonymity, told The Jakarta Post that the sales were carried out to enable the mining company to concentrate business on its concession, which has been expanded to six million hectares since 1991. (hdj)