February 19, 2026 | 05:15 pm
TEMPO.CO, Jakarta - The American mining company Freeport-McMoRan has agreed to extend the operating rights of PT Freeport Indonesia (PTFI) in Papua until 2041. The agreement was signed with the Indonesian government through a Memorandum of Understanding (MoU) that regulates the continuation of mining activities in the Grasberg Mineral District.
One of the key points in the agreement is the increase in the Indonesian government's ownership stake. In 2041, Freeport will transfer an additional 12% of PTFI's shares to the government at no cost. However, the recipient party will still be responsible for proportionally replacing the investment cost based on book value for investments with benefits continuing after 2041.
"Freeport will maintain its current ownership interest in PTFI of 48.76% through 2041 and hold approximately 37% beginning in 2042," Freeport-McMoRan stated in an official release on Thursday, February 19, 2026.
This extension of operation will be implemented through the revision of PTFI's Special Mining Business License (IUPK) to match the age of the mining reserves. This step provides legal certainty for Grasberg mining operations for the next two decades. However, the implementation awaits the issuance of the revised IUPK by the Indonesian government.
Chairperson of the Board of Directors of Freeport, Richard C. Adkerson, stated that they appreciate the long-term partnership with the Indonesian government. According to him, the Grasberg operation has provided broad benefits for various stakeholders.
"And this extension will provide opportunities to continue to build substantial value for all stakeholders in one of the world’s most significant copper and gold deposits," said Adkerson.
In addition to the share arrangement and licensing, Freeport expressed additional commitments to the Papua community. The company will increase social support, including funding the construction of a hospital and two medical education facilities.
Operationally, PTFI plans to increase exploration expenditures to search for new reserves and open long-term expansion opportunities. Meanwhile, in the downstream sector, the company emphasized its priority to refine and sell products domestically, including processed copper, precious metals, sulfuric acid, and derivatives.
Freeport also leaves open the possibility of expanding the marketing of processed copper to the United States, according to market mechanisms, if demand for supplies increases in that country.
The company ensures that the current governance and operational structure, including provisions in the shareholder agreement and IUPK, will be maintained throughout the life of the mining reserves.
Currently, the Indonesian government holds a 51.2% ownership stake in PT Freeport Indonesia through MIND ID. With the commitment to transfer 12% of the shares, the Indonesian government will hold a 63% ownership stake in the mining company located in the Papua Pegunungan area by 2041.
Read: Indonesia Extends Freeport's Mining Permits in Papua to 2041
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