Will Freeport-McMoRan Copper & Gold’s Big Institutional Shareholders Sell More from Less Royalties?

In 2012, Freeport-McMoRan Copper&Gold Inc.’s (NYSE:FCX)’s shares are up 10.93 percent. Recently, the company was asked by Indonesia to to increase royalties to 10 percent. This came from on-going negotiations by the country to other companies as well and they focus on six issues: increase in royalty payments, the obligation to process mineral ores in Indonesia, use of local goods and services, divestment, contract extensions, and the size of mining areas. 

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Freeport has not commented on Indonesia’s latest demand.

The company has mines around the world and the one in question for Indonesia is its Grasberg mine. This represents the biggest gold mine and the third largest copper mine in the world.

From a possible royalty increase, will Freeport-McMoRan Copper & Gold’s largest shareholders decrease their holdings?1126 institutional firms indicated owning shares of Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) in Q2 2012. These firms reported owning a total of 751.679 million shares on 06/30/2012. The shares closed at $33.75 on 06/30/2012.

Here are the ten largest positions in Freeport-McMoRan Copper & Gold Inc. at the end of June 30th, 2012.

State Street Corp held 42,316,540 shares on 06/30/2012 worth $1,441,724,505. This brought the portfolio total to 0.23%.

Vanguard Group Inc held 40,341,349 shares on 06/30/2012 worth $1,374,429,748. This brought the portfolio total to 0.19%.

Blackrock Group Ltd held 27,254,316 shares on 06/30/2012 worth $928,554,538. This brought the portfolio total to 0.82%.

Blackrock Institutional Trust Company N.A. held 25,455,135 shares on 06/30/2012 worth $867,256,442. This brought the portfolio total to 0.24%.

Allianz Asset Management AG held 16,980,132 shares on 06/30/2012 worth $578,513,092. This brought the portfolio total to 0.88%.

JPMorgan Chase & Co held 15,265,389 shares on 06/30/2012 worth $520,091,799. This brought the portfolio total to 0.2%.

Fisher Asset Management LLC held 14,110,146 shares on 06/30/2012 worth $480,732,670. This brought the portfolio total to 1.38%.

Deutsche Bank AG held 13,245,789 shares on 06/30/2012 worth $451,284,027. This brought the portfolio total to 0.24%.

Deutsche Bank AG held 13,245,789 shares on 06/30/2012 worth $451,284,027. This brought the portfolio total to 0.24%.

Northern Trust Corp held 13,026,884 shares on 06/30/2012 worth $443,825,934. This brought the portfolio total to 0.2%.

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