Pacific / West Papua

Talks between Indonesia and PT Freeport mining ongoing

09:26 am on 20 March 2017

Negotiations between the Indonesian government the mining company, PT Freeport, are still ongoing, almost one month after the firm threatened to take its case to international arbitration.

Freeport, which runs the massive Grasberg gold and copper mine in West Papua, had refused to accept the government's demand to convert its contract of work agreement into a special mining licence.

The company argues that a special licence would annul its contract of work agreement, which includes several rights for the company, including protection of its long-term investments.

Under the new government regulations, Freeport is required to gradually divest 51 percent of its shares to Indonesian entities.

Freeport's Indonesia executive vice president, Tony Wenas, told the Jakarta Post that no solution had been reached since negotiations started, but declined to disclose what the deadlock was.