INDONESIA

Indonesia on Thursday struck an agreement with Freeport-McMoRan Inc and Rio Tinto to buy a controlling stake in the world’s second-biggest copper mine via a series of transactions valued at US$3.85 billion. The pact establishes a structure for Indonesia, through its state-owned mining holding company PT Inalum, to gain control of the Grasberg mine in Papua. The deal should cap years of wrangling over the rights for the site as Jakarta seeks to gain greater control over its mineral wealth. Last August, the two sides agreed to let Freeport keep operating the mine, possibly until 2041 while ceding control over its local unit, PT Freeport Indonesia.