Freeport-McMoRan says it is still in discussions with Indonesia about the Grasberg Mine rights.

Freeport-McMoRan announced on Tuesday that it is still in talks with the Indonesian government regarding the rights to operate the Grasberg gold and copper mine beyond 2041.

Earlier on Tuesday, news reports indicated that Phoenix's Freeport had agreed divest a 12% share in its Indonesian subsidiary, PT Freeport Indonesia. Grasberg, the largest gold mine in the world and second-largest mine of copper, is located in Indonesia.

PT Freeport Indonesia, a copper miner with operations in the Americas and Asia, is operated by Freeport.

Freeport responded to the request by saying that it "continues to advance discussions" with the Indonesian government regarding an extension of its operating rights beyond 2041.

The parties are working hard to reach an agreement that will benefit all stakeholders. Freeport will make a formal announcement once an agreement is completed," said a spokesperson for the company.

Freeport declared force-major at Grasberg due to torrential mudslides which killed two workers and injured others earlier this month.

Freeport stated that Grasberg might not be able to return to its pre-accident operation rates until 2027 at the earliest. It is predicted that the mine's temporary shutdown will have a negative impact on global copper supply for several years. (Reporting and editing by Franklin Paul, Ernest Scheyder)

(source: Reuters)