Indonesia has announced that it wants to invite the CEO of Freeport-McMoRan Inc (NYSE:FCX) to Jakarta for a meeting in which they will try to end an ongoing copper mine dispute.
The Indonesian government is convinced that ending the dispute is the best way forward and as such, it is determined to end the dispute which involves a new mining deal in the second largest copper mine in the world. The dispute previously forced Freeport to put on hold the exportation of copper concentrate from the Grasberg mine but it resumed in April. The inactivity in the mine lasted for 15 weeks and it was caused by disagreements over mining rights. The country wants to find a permanent solution for the problem.
The meeting will be an avenue to find a way forward
Teguh Pamuji, the mining secretary general for Indonesia said on Monday that a meeting between Freeport’s CEO Richard Adkerson and Indonesian government officials would be highly important. He also added that it would be attended by finance minister Sri Mulyani Indrawati and mineral resources minister Ignasius Jonan.
“Perhaps that will be decided on at the high level meeting at the end of this month,” stated Pamuji.
A spokesman from the company declined to reveal whether Adkerson had accepted the invitation for the meeting but he did point out that both parties have been working towards a solution aimed at long-term investment.
The announcement on Monday was quite significant for the company because Freeport stock rallied by 5 percent on the same day, marking the biggest single day for the stock in almost four months. It also signifies that investors are optimistic about the direction of the meeting. The Indonesian government considers Freeport as one of the biggest investors and thus throwing out the dispute would be a significant positive move and a win for both parties. The company also happens to be one of the major tax payers in Indonesia, thus more incentive to maintain positive ties.
Freeport stock closed the latest trading session on Tuesday at $12.58 after a 0.40 percent gain from the value of the stock during the previous close.
