Freeport sells plane, aviation assets

JAKARTA (JP): PT Freeport Indonesia announced here yesterday that it has sold some of its aviation-related assets in return for cash and an equity stake in a newly formed entity, PT Airfast Aviation Facilities Company (AVCO).

The shareholders of the newly-formed company are PT Giga Haksa, which acquired a 30 percent stake, PT Airfast Indonesia with a 45 percent stake and FI with 25 percent.

The deal was financed by ABN-Amro Bank, Freeport said in a statement.

Freeport is an affiliate of Freeport McMoRan Copper and Gold, which is listed on the New York Stock Exchange.

The total assets purchased by AVCO, worth some US$48 million include three Boeing 732-200s, three de Haviland Canada Otters, for Bell Helicopters and one Grumman Mallard Seaplane.

In addition to the aircraft, the purchase included airport facilities in Timika, Irian Jaya, previously operated by Freeport, as well as other real estate and equipment.

According to the statement, the sale of the assets and equity redistribution are part of Freeport's overall privatization program to sell non-mining related assets to companies experienced in those areas.

The program will enable Freeport to refocus its assets on its core business of mineral deposit exploration and mining.(hen)