February 19, 2026 | 02:38 pm
TEMPO.CO, Jakarta - The American mining company, Freeport-McMoRan, has announced an agreement with the Indonesian Government to extend the operating rights of PT Freeport Indonesia (PTFI) in Papua until 2041. The agreement is outlined in a Memorandum of Understanding that governs the continuation of operations in the Grasberg Mineral District.
Under the agreement, the Special Mining Business Permit (IUPK) of PTFI will be amended to extend the operating rights until the life of the mine reserves. This change strengthens the Grasberg mine's legal certainty for the next two decades.
The Chair of Freeport's Board of Directors, Richard C. Adkerson, expressed his appreciation for the long-term partnership with the Indonesian Government. He stated that the Grasberg mining operation in Papua has provided significant benefits to all stakeholders over the past six decades.
"And this extension will open opportunities to continue creating significant value for all parties in one of the largest copper and gold reserves in the world," said Adkerson, as quoted from the written statement on Thursday, February 19, 2026.
However, this extension is still awaiting the issuance of the revised IUPK by the Indonesian Government. PTFI stated that it will soon complete the application process for the permit extension in accordance with the provisions agreed upon in the MoU.
In addition to licensing aspects, Freeport also stated additional commitments to the Papua community. The company will provide additional social support, including funding for the construction of a new hospital and two medical education facilities. In the upstream sector, PTFI plans to increase exploration budgets and expedite studies to discover new resources and long-term expansion opportunities.
On the downstream side, the company emphasized its priority to prioritize refining and selling products domestically, including processed copper, precious metals, sulfuric acid, and other derivative products. According to market mechanisms, Freeport also sees the opportunity to expand the marketing of refined copper to the United States if demand increases in that country.
The agreement also regulates changes in the share ownership structure. In 2041, Freeport will transfer an additional 12 percent of PTFI shares to the government at no cost. This transfer comes with the provision of proportional investment cost reimbursement, which will continue to provide benefits based on book value after 2041. Freeport will hold 48.76 percent of PTFI shares until 2041, after which that portion will decrease to around 37 percent.
The company ensures that the governance structure, operations, and provisions in the current shareholder agreements and IUPK will be maintained throughout the life of the mining reserves.
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