8 Jul 2014

Jakarta and Freeport complete talks over Papua mine

2:48 pm on 8 July 2014

Indonesia says it has concluded talks on the renegotiation of its contract with mining giant Freeport McMoRan, which operates the world's biggest copper and gold mine in Papua.

The Chief Economics Minister, Chairul Tanjung, told the Jakarta Globe, he hopes he can sign a contract and is awaiting cabinet approval.

Freeport's CEO Richard Adkerson, has been in Jakarta in talks with the Government, and the Globe reports the new contract will make adjustments in line with the 2009 mining law.

Other key terms of the agreement concern the allocation of government revenue and the divestment of foreign ownership in the company.

Freeport also reportedly wants to address the ban on ore exports under the law, which requires miners to process ore before shipping overseas.