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Is Freeport’s Grasberg Transaction a Win-Win?

Is Freeport’s Grasberg Transaction a Win-Win?

On July 12, Freeport-McMoRan (FCX), the leading US-based copper miner, announced that the company would sell a small stake in PT Freeport Indonesia (or PT-FI). Rio Tinto (RIO) will sell its entire stake in PT-FI. PT Indonesia Asahan Aluminium (Inalum), a state-owned enterprise, plans to acquire the stakes and emerge as the largest shareholder in PT-FI after the deal closes.