Under the terms of the MOU, the parties have agreed as follows:
- PTFI’s Special Mining Permit (IUPK) will be amended to provide for a lifetime extension of exploitation rights.
- PTFI will increase support for communities in Papua, including financial support for a new hospital and two medical education institutions.
- PTFI will increase exploration expenditures and promote studies to identify and develop long-term resources and expansion opportunities.
- PTFI will continue to prioritize domestic downstreaming through local sales of refined copper, precious metals, sulfuric acid and other products. PTFI will also be in a position to expand its market-rate marketing of refined copper into the United States (US), should the US require additional copper supplies.
- FCX will transfer a 12% equity interest in PTFI to government interests in 2041 at no cost, provided that the acquirer reimburses FCX for pro rata costs incurred based on the carrying amount for investments benefiting the period after 2041. FCX will retain its current 48.76% ownership interest in PTFI through 2041 and approximately 37% from 2042 onwards.
- The existing governance and operational structure and the terms of the existing Shareholder Agreement, the IUPK and other applicable agreements will continue for the life of the resource.
Richard C. Adkerson, Chairman of the Board of Directors, and Kathleen Quirk, President and Chief Executive Officer, said: “We value our long-standing partnership with the Indonesian government, the people of Indonesia and Papua, and the mutual trust built over many years. The Grasberg operations have delivered substantial benefits to all stakeholders over the six decades of its existence, and this expansion will provide opportunities to continue to build substantial value for all stakeholders in one of the world’s most important copper and gold deposits.”
The extension of exploitation rights and other agreed terms are subject to the issuance of an amended IUPK by the Indonesian government. PTFI intends to complete its renewal application as quickly as possible, in accordance with the agreed terms.
FREEPORT: Especially in copper
FCX is a leading international metals company with the aim of being at the forefront of copper. Headquartered in Phoenix, Arizona, FCX operates large, long-lived, geographically diverse assets with significant proven and probable reserves of copper, gold and molybdenum. FCX is one of the largest publicly traded copper producers in the world.
FCX’s asset portfolio includes Indonesia’s Grasberg mineral district, one of the world’s largest copper and gold deposits; and major operations in the US and South America, including the large-scale Morenci mineral district in Arizona and the Cerro Verde operation in Peru.
By supplying responsibly sourced copper, FCX is proud to make a positive contribution to the world far beyond its operational boundaries. Additional information about FCX is available on FCX’s website at FCX.com.
Warning: This press release contains forward-looking statements. Forward-looking statements are all statements other than statements of historical fact, such as expectations regarding the extension of PTFI’s operating rights, the terms and issuance of the amended IUPK, and the continuation of existing operating and governance structures. The words ‘anticipate’, ‘may’, ‘could’, ‘plan’, ‘believe’, ‘estimate’, ‘expect’, ‘projects’, ‘goals’, ‘intend’, ‘likely’, ‘will’, ‘should’, ‘could’, ‘are’, ‘potential’, ‘assumptions’, ‘guidelines’, ‘aspirations’, ‘commitments’, ‘future’, ‘striving’, ‘initiatives’, “objectives,” “opportunities,” “strategy” and similar expressions are intended to identify these statements as forward-looking statements.
FCX cautions readers that forward-looking statements are not guarantees of future performance and actual results may differ materially from those anticipated, anticipated, projected or assumed in the forward-looking statements. Important factors that could cause FCX’s actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, meeting the requirements under PTFI’s IUPK to expand mining rights from 2031 through 2041; delays in GOI approvals or inability to obtain GOI approvals, including with respect to the agreed terms of the MOU and with respect to the amendment of the IUPK to extend PTFI’s operating rights beyond 2041; possible delays in finalizing the terms of the MOU, including finalizing the terms of any related agreements; PTFI’s ability to repair damage associated with mudrush incidents, implement improved operating procedures, restart safely, with a phased ramp-up, and achieve full production and downstream processing rates within the expected timeline and optimize production plans; recover amounts from insurance policies; resolving force majeure declarations and maintaining relationships with commercial counterparties; changes in cash needs, financial position, financing or investment plans; changes in general market, economic, geopolitical, regulatory or industry conditions, including market volatility related to trade policy and tariff uncertainty; reduction in liquidity and access to capital; changes in tax laws and regulations; political and social risks, including the potential impact of violence in Indonesia and relations with local communities and indigenous peoples; operational risks inherent to mining, with higher inherent risks to underground mining; changes in mine plans or operational adjustments, delays, postponements or cancellations, including the ability to smelt and refine or inventory; results of technical, economic or feasibility studies; as well as other factors described in more detail under the heading “Risk Factors” in FCX’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the U.S. Securities and Exchange Commission.
Investors are cautioned that many of the assumptions on which FCX’s forward-looking statements are based are likely to change after the date the forward-looking statements are made. Furthermore, FCX may make changes to its business plans that could impact its results. FCX undertakes no obligation to update any forward-looking statements, which speak as of the date on which they are made, notwithstanding any changes in assumptions, changes in business plans, actual experience or other changes.
View the source version on businesswire.com: https://www.businesswire.com/news/home/20260218099766/en/
Financial contact person:
David P Joint
(504) 582-4203
Media contact:
Linda S. Hayes
(602) 366-7824
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