The Globe and Mail reports in its Wednesday edition that earlier this year, Freeport-McMoRan chief executive
officer Richard Adkerson
dismissed the idea
of selling a majority stake in the
company's flagship
Indonesian copper-and-gold
mine to local investors. A Bloomberg dispatch to The Globe says that now he plans to do just that.
The Indonesian Energy
and Mineral Resources Ministry
tweeted its glee, "Freeport
obedient, Indonesia is sovereign."
Freeport's
loosening grip on its Indonesian
crown jewel illustrates a larger
challenge facing the global
mining industry: In a surge of
economic nationalism, local
governments and unions are
pushing back against Western
dominance of the world's natural
resources.
"We're seeing the rise of more
nationalistic governments everywhere,"
said Paul Mitchell at Ernst & Young's mining practice. In Zambia, Glencore PLC threatened
to fire 4,700 workers after the
government raised power prices
-- and then turned off the switch
-- before agreeing to pay. In Tanzania, gold miner Acacia
Mining PLC, majority owned by
the world's largest gold producer,
Barrick Gold,
is facing a tax bill on its gold
mines equal to four times the
country's GDP.
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