Case Study

Freeport’s Share Price and Divestment Deal Spoiled by Tighter Tailings Rules

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Aerial View Of Deep Mine Lake

About this Case Study

The case study on mining company Freeport-McMoRan examines the transition risks of tighter tailings disposal regulations in Indonesia and the market reaction to the company’s response. Tailings disposal in waterways near Freeport’s mine had caused water pollution and forest degradation. 

Key outcomes

  • Freeport-McMoRan faced an 18% share price fall immediately following the announcement of new mining waste regulations in Indonesia, the largest decline since 2016.
  • Investors were concerned that the company’s inability to meet the new standards would further stall plans to increase government ownership of the mine.
  • The mining sector is associated with impacts on nature, particularly water and air pollution, geological degradation and biodiversity loss.
Download Case Study (Freeport’s Share Price and Divestment Deal Spoiled by Tighter Tailings Rules)

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