Freeport-McMoRan Inc. (FCX) Signs MoU With Indonesian Government To Extend Mining Operations

Freeport-McMoRan Inc. (NYSE:FCX [1]) is one of the Best Stocks to Buy and Hold For the Next 3 Years[2]. On February 18, Freeport-McMoRan Inc. (NYSE:FCX) announced signing a Memorandum of Understanding with the Government of Indonesia to extend its mining operations at the high-value Grasberg minerals district indefinitely, based on the site's resource lifespan.

Management noted that this agreement extends long-term access of its subsidiary, PT Freeport Indonesia (PTFI), to one of the world's largest copper and gold deposits. The terms of the agreement note that PTFI will increase its community investment and will fund a new hospital and two medical training facilities.

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Moreover, as part of this MoU, Freeport-McMoRan Inc. (NYSE:FCX) retains 48.76% ownership in PTFI through 2041, after which the company will transfer 12% to the government at book value.

Richard C. Adkerson, Chairman of the Board, noted:

"We value our long-standing partnership with the Indonesian government, the people of Indonesia and Papua, and the mutual trust that has been built over many years. The Grasberg operations have provided substantial benefits to all stakeholders over their six-decade history, and this extension will provide opportunities to continue to build substantial value for all stakeholders in one of the world's most significant copper and gold deposits."

Freeport-McMoRan Inc. (NYSE:FCX) is involved in the mining of copper, molybdenum, and gold.

The company's operations are divided into the following segments: North America Copper Mines, South America Operations, Indonesia Operations, Molybdenum Mines, Rod and Refining, Atlantic Copper Smelting and Refining, and Corporate and Other.

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References

^ FCX (finance.yahoo.com)
^ Best Stocks to Buy and Hold For the Next 3 Years (www.insidermonkey.com)
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^ 30 Stocks That Should Double in 3 Years (www.insidermonkey.com)
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