PT Freeport (PTFI) increased its share ownership in PT Smelting to 65 percent. This was conveyed by the Main Director of PTFI Tony Wenas, in a joint meeting with Commission VII DPR RI at the DPR Building, Monday (27/3/2023). Tony said that the additional share portion in PT Smelting was the company's effort to obtain a Special Mining Business Permit or IUPK located at the Freeport Papua Mine. Initially, Freeport's share in PT Smelting was only 39.5 percent. The mechanism for increasing the share portion is carried out through an investment of US$250 million which is equivalent to Rp.3.7 trillion (exchange rate of Rp.15,183 per US dollar). With this investment, it is expected that copper smelting capacity can be carried out to 1.3 million tons per year, an increase compared to the previous 300,000 tons.

"We asked PT Smelting to expand to fulfill its IUPK obligations. With (investment) US$250 million, Freeport's shares in PT Smelting, which are currently 39.5 percent, will increase to 65 percent after the expansion is complete," said Tony Wenas. For information, PT Smelting is a smelter company that processes pure copper. After the agreement is completed, the two plan to develop a new business scheme in 2024. The agreement is carried out by carrying out marketing and product contracts, which include anode mud, sulfuric acid, copper scale, to copper telluride. Tony said, during the transition period, the entire trading process and sales contracts would be carried out by PT Smelting, through PT Freeport. "We are the (majority) shareholders who control PTFI, and this is the progress of PT Smelting's divestment or expansion," continued Tony.

Source: https://money.kompas.com/read/2023/03/28/104200226/freeport-tambah-porsi-saham-di-pt-smelting-jadi-65-persen