Mimika district gov’t preparing to buy PT Freeport stake

Five-percent stake in mining giant PT Freeport Indonesia, is bought by the Mimika district.

The administration deputy administrator H Abdul Muis said the district administration was eyeing a 9.38 percent stake in PT Freeport that was previously owned by Indo Copper company.

“We are ready to buy PT Freeport shares. If we are allowed to buy a two or three percent stake, it would be very meaningful. We are also ready to buy a five-percent stake,” Abdul Muis said.

He said the Mimika district administration wished to acquire shares in PT Freeport not merely for financial gain but also to give the company whose mines are located in the Mimika region a greater sense of belonging.

The Mimika district administration had already conveyed its wish to PT Freeport’s management and received a positive response.

However, the matter also needed to be discussed with the Papua provincial administration which was also interested in acquiring shares in the copper, gold and silver mining company, Abdul Muis said.

“Our wish to buy PT Freeport shares did not arise in connection with the ongoing Freeport workers strike because we have been interested in a Freeport stake since 2009,” Abdul Muis said.

PT Freeport had no problem with our wish provided that we first coordinate with the Papua provincial administration to make an agreement on the percentage of shares each of us would buy,” Abdul Muis said.

As a first step to realize its Freeport shares purchasing plan, the Mimika district administration had requested a consultant in Jakarta to conduct a study on its plan.

The Mimika district administration had also presented a draft bylaw to the Mimika legislative council to establish a regional limited liability company named PT Mimika Investama Holding Company.

PT Mimika Investama Holding Company would eventually do the shares purchase and manage them on behalf of the Mimika district government.

The Mimika legislative council had in principle approved the local government’s plan to acquire PT Freeport shares and formed a Special Committee on the divestment of PT Freeport shares.

The special committee chaired by Luther Wakerkwa had conducted a comparative study in West Nusa Tenggara province and held a number of meetings with relevant ministries in Jakarta.

Source: ANTARA News

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