Freeport to resume contract extension talks with Indonesian government in 2026

Freeport McMoRan (FCX) and its subsidiary PT Freeport Indonesia (PTFI) are set to resume discussions with the Indonesian government in 2026 regarding the extension of the company's mining contract in Papua. PTFI is currently preparing to submit a long-term contract extension application that will cover the remaining life of the mine's mineral resources. The proposal is expected to be formally submitted this year.

FCX management stated in its year-end performance report that in connection with the extension process PTFI will continue additional exploration activities, conduct further development studies, and expand its corporate social responsibility programs. One of the key objectives of the talks is to secure contractual certainty beyond 2041, when the current mining license is scheduled to expire. FCX has expressed its willingness to divest part of its ownership stake in PTFI, although the company intends to do so only after 2041.

According to the report, FCX expects to retain approximately 49 percent ownership in PTFI until 2041 and plans to transfer additional shares to Indonesian state-owned enterprises starting in 2042. This would reduce FCX's post-2041 ownership stake to around 37 percent. FCX also expects that the current governance arrangements will remain in effect throughout the remaining life of the mine's mineral resources.

Under Indonesian regulations, FCX is required to divest 12 percent of its shares in PTFI as a mandatory condition for securing a contract extension. Previously, Energy and Mineral Resources Minister Bahlil Lahadalia said the government aims to complete negotiations related to Freeport's share divestment within this year. "In the near future, we will finalize the divestment of Freeport shares for Papua.

God willing, it will be completed in the first quarter," Bahlil said on Thursday, January 22, 2026.