New Lobbying by Gold Producer

As the first foreign company to invest in Indonesia during the Suharto era, Freeport McMoRan Copper & Gold received preferential treatment. Just two years after the start of its 30-year contract of work, the US-based mining giant's local subsidiary was able to turn a profit.

Eighteen years before the end of its contract, Freeport discovered the massive Grasberg copper-gold deposit. The company set about high-level lobbying, promising a 9.36-percent shareholding to a business associated with officials high up in Suharto's regime. As a result, Freeport's contract was extended to 2021. Now, seven years before the contract is due to expire, a new round of lobbying has begun.

June 17, 2014