Freeport’s Contribution to Indonesia

10 October 2022

PT Freeport Indonesia (PTFI) mining contribution at the Grasberg Mine, Tembagapura District, Mimika, Papua for local communities from 1991 to 2021 has reached US$2 billion or equivalent to Rp30 trillion (estimated exchange rate of Rp15,000 per US dollar).

Freeport-McMoRan Chairman of the Board and CEO Richard C. Adkerson said the contribution would continue up to US$100 million or Rp. 1.51 trillion annually until the special mining business license (IUPK) expires in 2041.

"PTFI’s Contributions to local communities are in the form of health, education, people's economy, infrastructure and other real contributions," said Richard during a PTFI Scientific Oration at the University of Indonesia (UI), Depok, Wednesday (5/10/2022).

Richard said the two main tribes of the five relative tribes who live in Mimika Regency will get free health facilities for minor treatment to major surgery. According to him, the policy has been given since 20 years ago.

On the other hand, PTFI has also paid dividends to BUMN Holding Mining Industry MIND ID or Mining Industry Indonesia reaching Rp 15 trillion for 2022. Richard further explained the allocation of dividend distribution to district and provincial governments, each of which gets 7 percent and 3 percent are managed by MIND ID.

As it is known, the majority shareholding of PTFI is owned by the Indonesian government at 51.2 percent, FCX holds the rest. The government-owned shares consist of 26.24 percent ownership in PT Inalum and 25 percent in PT Indonesia Papua Metal and Mineral (IPMM).

Previously, PTFI had allocated a social investment of up to 2041 of US$ 100 million or equivalent to Rp. 1.52 trillion, as the company's commitment to sustainability. Meanwhile, PT Freeport Indonesia's social investment from 1992 to 2021 has reached US$1.9 billion, equivalent to Rp.28.88 trillion.

Meanwhile, PTFI targets to deposit US$80 billion or equivalent to Rp1. 128 trillion to the state treasury directly until 2041. The assumption is that the price of copper is US$4 and the price of gold is in the range of US$1,800 at that time.

Currently, the company's ore reserves are projected to be mined until 2052 and based on PTFI's estimates, it is in the range of 3 billion tons. PTFI and the government will continue to focus on ensuring PTFI's contribution to the national and local economy until the IUPK expires in 2041.

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