July 12, 2018 / 5:09 AM / 7 months ago

Indonesian President says state mining company makes deal to raise stake in Freeport unit to 51 percent

Indonesian President Joko Widodo waves to the student performers (not pictured) upon his arrival to attend the Association of Southeast Asian Nations (ASEAN) Summit and related meetings in Clark, Pampanga, northern Philippines November 12, 2017. REUTERS/Erik De Castro

JAKARTA (Reuters) - Indonesian President Joko Widodo said on Thursday that state-owned mining company PT Inalum has reached an initial agreement with Freeport-McMoRan Inc (FCX.N) to increase its stake in Freeport’s local unit to 51 percent.

The larger stake would give Inalum a controlling stake in Freeport’s Indonesian assets, including the Grasberg mine, the world’s second-biggest copper mine.

Widodo said the government hopes to get larger amount of income from tax revenue and royalties under the deal and that Indonesia’s national interest should be prioritised in the agreement.

Coordinating Minister for Economic Affairs Darmin Nasution told Reuters the prices for the shares to be purchased under the deal have not been determined yet.

Reporting by Gayatri Suroyo; Writing by Fransiska Nangoy; Editing by Christian Schmollinger

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