25 Jul 2012

Freeport mine in Papua to pay more to Jakarta

6:40 pm on 25 July 2012

Freeport Indonesia has agreed to raise its royalty payment to the Indonesian Government and has also offered to double the country's stake in its huge Papuan mining operation.

The co-ordinating Minister for the Economy, Hatta Rajasa, says Freeport is willing to increase its one percent royalty, but did not specify by how much.

The Jakarta Globe says Indonesia has been seeking higher royalties and wants maximum foreign ownership in mining companies cut to less than half.

The Tempo website reports that Freeport has also offered Jakarta a 9.36 percent stake in the mine.

The Indonesian government already owns nine percent of Freeport Indonesia.

The website says Jakarta has offered the additional holding to the local Papua administration.