Freeport Secures Preliminary Deal to Extend Operations at Indonesia's Grasberg Mine

By Amanda Lee and Ying Xian Wong

U.S. mining giant Freeport-McMoRan has reached a preliminary agreement with Indonesia to extend its Grasberg permit for the life of the resource, ensuring long-term access to one of the world's largest copper and gold mines.

Special mining rights for Freeport's Indonesian unit, currently valid until 2031, will be amended to allow operations through 2041, according to a memorandum of understanding announced late Wednesday. Thereafter, the Phoenix, Ariz.-based company's holding in Freeport Indonesia will fall to 37% following the transfer of a 12% stake to the government.

The deal remains subject to the Indonesian government's final approval, the miner said.

"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," said Freeport Chairman Richard C. Adkerson and Chief Executive Kathleen Quirk.

Grasberg, located in the remote highlands of Central Papua province, is the world's second-largest copper mine, accounting for about 3% of global output.

Freeport said its Indonesia unit will continue to prioritize domestic downstreaming through the sale of refined copper, precious metals and other products. Freeport Indonesia will also be positioned to broaden its marketing of refined copper to the U.S. if the country requires additional supplies, it said.

Write to Amanda Lee at amanda.lee@wsj.com and Ying Xian Wong at yingxian.wong@wsj.com

(END) Dow Jones Newswires

February 19, 2026 01:46 ET (06:46 GMT)