SHANGHAI, Dec.6 (SMM)－Indonesian government said on Tuesday, it is planning to purchase Rio Tinto’s stocks of copper mine Grasberg, which is operated by US Freeport－McMoRan CopperGold Inc. This action can probably resolve a protracted issue among three parties. As per the joint-venture company built in 1996, Rio Tinto holds 40% stocks of Graberg and enjoys certain output and 40% output expect that certain amount until 2021. After 2022 it will enjoy 40% of total output of this mine.
In order to meet new regulation of ownership of Indonesian government, Freeport agreed to strip 51% stocks of its Indonesian subsidiary to Indonesian government.
Christopher LaFemina, Jefferies analyst says this agreement is probably a three-win result for Freeport, Rio-Tinto and Indonesian government because the value loss of Freeport is less than anticipation, Rio-Tinto can exit from a non-core business with high risk and Indonesian government will possess most stocks of Grasberg.
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