Ashurst and Oentoeng Suria & Partners (OSP) are acting for Indonesia Asahan Aluminium (Persero) (Inalum), an Indonesia state-owned company, as lead counsel in Inalum’s landmark acquisition of a 51.2% majority stake in the Grasberg mine from leading mining companies Freeport-McMoRan and Rio Tinto.
The Grasberg mine, located in Papua, Indonesia, is the world’s largest gold mine and second-largest copper mine. After the transaction, Inalum’s stake in the Grasberg mine increased from 9.36% to 51.2%, giving Indonesia majority interest in the mine.Valued at US$3.85 billion, the transfer of a majority interest in the mine from Freeport-McMoRan and Rio Tinto to Inalum represents one of the most significant and complex M&A transactions in the region this year, and Indonesia’s largest divestment by a foreign resources company to date.
The divestment involved a transfer of a 40% participating interest from Rio Tinto, issuance of new shares in Freeport Indonesia, merger filings in five different jurisdictions and US$4 billion worth of fund raising.
The Grasberg mine is a key strategic asset to the Indonesian government and the transaction symbolises the government’s continued efforts to gain control of its national assets. The divestment is also the largest acquisition by an Indonesia state-owned enterprise.
Partners Simon Brown and Ratih (Ipop) Nawangsari led the Ashurst/OSP team, advising on the international law and Indonesian law aspects, respectively.