Rio Tinto talks loom as a lifeline for Freeport in Indonesia

Toronto

WHEN it comes to finally reaching a deal to secure Freeport-McMoRan Inc's long-term right to keep mining in Indonesia, the ball appears to be firmly in Rio Tinto Group's court.

Over an almost two-hour conference call on Thursday, chief executive officer Richard Adkerson made it clear that the company's efforts to get a new long-term contract in Indonesia - including divesting a stake in its Indonesian unit to local interests - remain challenging. However, Rio's apparent willingness to part with its own share of future production has changed the game.

"This issue with our joint-venture partner really changes what the divestment obligation from Freeport would otherwise be," Mr Adkerson said…