Deals
Freeport Plunges After Indonesia Toughens Environmental Rules
- Shares close down 15% on new standards for river tailings
- Environmental claims ‘shocking and disappointing,’ CEO says
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Freeport-McMoRan Inc. says it would be impossible to keep mining Grasberg, its flagship copper-and-gold asset in Indonesia, if it were to adopt new environmental standards unveiled by the state this month.
Within the last two weeks, the Phoenix-based miner was blindsided by “shocking and disappointing” environmental claims from the Ministry of the Environment and Forestry, Chief Executive Officer Richard Adkerson told analysts during the company’s first-quarter earnings call Tuesday. “Nobody could mine this ore body in consistency with these decrees. You just physically can’t do it.”