Minister of ESDM Expects Divestment of PT Freeport Four Billion Dollars

By : Hariyanto And Aldo Bella Putra | Tuesday, October 10 2017 - 14:00 IWST

INDUSTRY.co.id - Jakarta - The Minister of Energy and Mineral Resources (ESDM) Ignatius Jonan estimates the devaluation of 51 percent of PT Freeport Indonesia worth four billion US dollars.

Jonan said on the basis of valuations if it is projected that Freeport McMoran (FCX) in the New York Stock Exchange has a market value of 20.74 billion US dollars, then Freeport Indonesia contributes approximately 40 percent of that value.

In a joint meeting with the House of Representatives Commission VII, Senayan, Jakarta, Monday (9/12/2017) Jonan further explained 40 percent of 20.74 billion US dollars of approximately eight billion US dollars.

So if the majority divestment will be dimabil by Indonesia at least more or less should be prepared about four billion US dollars because it refers to a 51 percent divestment of eight billion US dollars.

"If it is referenced, the average in 5-10 years of profit contribution from Grasberg or PTFI operations is about 40 percent, yes the value is eight billion.If 51 percent is yes four billion.Easy to ask what premium, because this control 51 percent," said Jonan before the House of Representatives Commission VII.

The issue of control, according to Jonan is currently still in the conversation. But it has been committed since the beginning, that for the implementation of the mine is still carried out by Freeport McMoran, but managerial or arrangement remains under the Indonesian government.

The decision to renew itself, the government insisted if it would be given if the terms offered by Indonesia had been agreed upon among them 51 percent divestment, the two had committed to make the smelter, the three state revenues must be greater.

While the strategy to lead to the technical thing, the government will discuss it in private. (Ant)

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