JAKARTA (TheInsiderStories) – Gold and copper miner, PT Freeport Indonesia (PTFI) is predicted to generate a profit of US$2 billion in 2022, said senior official yesterday (01/09). As we know, the acquisition process of the PTFI’ majority shares to PT Indonesia Asahan Aluminum (Inalum) was completed on Dec. 21.
The Inalum’ CEO Budi Gunadi Sadikin said the reason that PTFI could be profitable because the gold reserves are still quite large and Grasberg Open Pit it will soon run out in this year. Moreover, he added, there are other copper and gold mines in the PTFI area such as the mining area with the name Cat Liar and Block B which until now have not been excavated.
Since 2014, President Joko Widodo has declared his intention to acquire majority shares in PTFI during his presidential election campaign. The change in share ownership will officially occur after a payment transaction of $3.85 billion to FCX in January 2019.
Inalum has secured $3.8 billion short-term loan facility from a syndicate banks led by Bank of Tokyo Mitshubisi to pay 51 percent of PTFI divestment shares. Then to pay this debt, the miner issued global bond with same amount anf use it to pay PTFI’ shares.
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