JAKARTA - Freeport-McMoRan (FCX) announced that it had signed a memorandum of understanding (MoU) regarding the extension of the mining permit of PT Freeport Indonesia (PTFI) at the Grasberg mine.
In a written statement to the media, FCX management revealed that based on the terms of the MoU, one of the things that was agreed upon was the transfer of shares of 12 percent to Indonesia which would be given for free.
"FCX in 2041 will transfer 12 percent of its stake in PT Freeport Indonesia (PTFI) to government interests at no cost," Freeport-McMoRan wrote, quoted from an official statement, Thursday, February 19, 2026.
Despite receiving 12 percent of shares for free, management continued, Indonesia is required to proportionally replace the cost of investment based on the book value for investments whose benefits continue after 2041.
"FCX will maintain its current ownership in PTFI at 48.76 percent until 2041 and hold around 37 percent starting in 2042," continued management.
With this extension of the IUPK, PTFI will increase its support for the people of Papua, including financial support for the construction of a hospital and two medical education facilities.
Freeport's Chairman of the Board of Directors Richard C. Adkerson said that mining operations at Grasberg have provided great benefits for all stakeholders for six decades.
"This extension will provide great benefits by providing an opportunity to continue to build substantial value for all stakeholders in one of the world's largest copper and gold deposit countries that are significant," continued Richard.
In addition, PTFI will increase exploration spending and advance studies to identify and expand long-term resources at Grasberg.
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