Freeport sells plane, aviation assets

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)