Freeport-McMoRan said on Wednesday it has reached an agreement in principle with the Indonesian government to extend operating rights at the Grasberg copper and gold mine for the life of the resource, securing continued access to one of the world’s largest mineral deposits.
Under the terms recorded in a memorandum of understanding, the special mining licence held by unit PT Freeport Indonesia will be amended to permit operations beyond the current permit expiration, though the extension remains subject to the Indonesian government issuing a formal amended licence that reflects the agreed terms.
The MOU is designed to preserve existing governance and operating structures across the Grasberg minerals district in Papua, ensuring continuity of management and on-the-ground operations while the licence amendment is finalized.
Freeport will retain a 48.76% ownership stake in PT Freeport Indonesia through 2041. As part of the agreement, the company will transfer a 12% interest at no cost to Indonesian government entities in 2041, which will lower Freeport’s effective holding to roughly 37% after that transfer.
In addition to the ownership provisions, the memorandum commits Freeport to increase exploration expenditure and to carry out expanded technical studies aimed at delineating and developing long-term resources and potential expansions within the Grasberg district.
While the MOU sets out the framework for life-of-resource operations and the related obligations for exploration and study, the arrangement is conditional on Indonesia issuing the amended special mining licence consistent with the agreed terms. Until that formal amendment is granted, the extension is not finalized.
Context and implications
The agreement secures operational continuity at Grasberg and frames a pathway for longer-term development work through enhanced exploration and technical assessment. Key administrative and ownership milestones are tied to the licence amendment process, and the planned transfer of a 12% interest to Indonesian government entities in 2041 is explicit in the memorandum.