Freeport to Give Indonesia a Majority Stake in Its Grasberg Mine<br />Freeport and the Indonesian government said in a news conference on Tuesday<br />that the American company would transfer to Indonesia a 51 percent stake in Grasberg, the world’s largest gold mine and second-largest copper mine.<br />The deal unveiled on Tuesday between the American owner, the mining company Freeport-McMoRan,<br />and the Indonesian government is meant to bring an end to years of rising public anger over American control of one of the mining industry’s crown jewels.<br />Late last year, Indonesia unveiled legislation that required foreign mining companies to switch to a new licensing agreement<br />that required them to divest 51 percent of their stakes in Indonesian mines.<br />In 2015, Grasberg’s output of gold and copper was worth $3.1 billion Local politicians and activists have complained<br />that Freeport pays little in taxes; the company has said it pays back more than half its profit from the mine in taxes, fees, royalties and other payments.<br />Mr. Joko has insisted that mining companies must divest majority stakes in order to continue operating in Indonesia,<br />and the government has turned up pressure on foreign companies to do just that.
