To download a PDF of the release, please visit the following link: Freeport-McMoRan Updates Status of PT Freeport Indonesia Operations

PHOENIX--(BUSINESS WIRE)-- Freeport-McMoRan Inc. (NYSE: FCX) is providing an update on the status of PT Freeport Indonesia's (PT-FI) operations and its discussions with the Government of Indonesia on concentrate exports and other matters related to its Contract of Work (COW).

Following more than five years of discussions with the Government, in which PT-FI negotiated in good faith to be responsive to the Government's aspirations while protecting the rights of its stakeholders, the parties have failed to reach agreement.

Indonesian government regulations passed in January and February 2017 require that PT-FI terminate its COW and convert to a special license (IUPK) in order to export its concentrate production. PT-FI has advised the Government that attempts to enforce this regulation on PT-FI violates its COW and that it is unwilling to terminate its COW unless replaced by a mutually acceptable form of agreement providing fiscal and legal assurances to support its long-term investment plans in Papua, Indonesia.

As a result, PT-FI has been unable to export concentrates and is proceeding with its plan to suspend investments in Papua, reduce its production by approximately 60 percent from normal levels and implement cost savings plans involving significant reductions in its work force and spending levels with local suppliers.

On February 17, 2017, pursuant to the COWG