July 25, 2017 / 3:16 PM / 8 months ago

BRIEF-Freeport sees mining deal with Indonesia, but challenges -CEO

July 25 (Reuters) - Freeport-McMoRan Inc

* Contract talks with Indonesia “very active”, “mutual sense of optimism” agreement can be reached -CEO Richard Adkerson

* Freeport CEO personally involved in talks with Indonesia, responsive to gov’t goals on divestment, smelter investment -Adkerson

* Freeport would require operational and governance control of Grasberg, any divestment would need to be fair market value -Adkerson

* Freeport would stop Indonesian spending plan of $700 million in 2017, $750 million in 2018 on Grasberg block cave, if “unexpectedly” unable to reach agreement -Adkerson

* Freeport remains focused on getting Indonesia agreement this year, gov’t has objective to resolve issue ‘we just haven’t seen in the past’ - CEO Adkerson

* Freeport preparing for arbitration if no agreement reached, 120-day notice period runs course, but not desired outcome - Adkerson

* Any Freeport arbitration claim would be ‘very large,” reflect losses from contract issues in previous years -Adkerson

* Freeport expects to have mining agreement with Indonesia by October -Adkerson Source text for Eikon: Further company coverage: (Reporting by Susan Taylor)

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