Freeport-McMoRan Considers Arbitration on Contract Dispute With Indonesia Government

By Sara Schonhardt

JAKARTA--Freeport-McMoRan Inc. (FCX) said it was considering commencing arbitration if it cannot resolve its contract dispute with the Indonesian government in the next 120 days.

The mining company has submitted to Jakarta descriptions of breaches and violations of its long-term contract of work with the government, Freeport said Monday.

The U.S. company said it was committed to complying with Indonesian law and to continuing negotiations with the government. Freeport's latest measure is part of a dispute-resolution process specified in the company's 1991 contract of work.

Chief Executive Richard Adkerson said Freeport wasn't trying to "dictate" to the government and was prepared to cooperate with whatever Jakarta decides to do.

"We have sought to compromise with the government and we will continue to work in good faith to reach a compromise," Mr. Adkerson told reporters at a briefing in Jakarta.

To make the needed investments in the company's mining operations and new smelting facilities required by the government, "we must have long-term certainty about our operating rights," he said.

Write to Sara Schonhardt at [e-mail]

(END) Dow Jones Newswires

February 20, 2017 00:37 ET (05:37 GMT)

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