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NEWS-LEADING DEVELOPMENTS SEPTEMBER 2017 • E&MJ; 5 www.e-mj.com ipated, the Jansen project will not be brought to the board in the 2018 cal- endar year," Mackenzie said. "In the meantime, we are considering multiple options to maximize the value of the Jansen project, including further im- provements to capital efficiency, further optimization of design and diluting our interest by bringing in a partner. Board approval will be sought for the project only if it passes our strict capital alloca- tion framework tests." Freeport, Indonesia Agree on Plan for Operating Rights Freeport-McMoRan (FCX) and the gov- ernment of Indonesia have reached an understanding on a framework to support PT Freeport Indonesia's (PT-FI) long-term investment plans in Papua. PT-FI will convert its Contract of Work to a spe- cial license (IUPK), which will provide the company with long-term operating rights through 2041. PT-FI will commit to construct a new smelter in Indonesia within five years. In return, the govern- ment of Indonesia will provide certainty of fiscal and legal terms during the term of the IUPK. "Reaching this understanding on the structure of a mutual agreement is signif- icant and positive for all stakeholders," said Richard C. Adkerson, president and CEO. "Important work remains on docu- menting this agreement and we are com- mitted to completing the documentation as soon as possible during 2017." Freeport will also agree to divest its ownership in PT-FI at fair market value so that Indonesia interests own 51% of PT-FI's shares. The timing and process of the divestment is being discussed with the government, but it will be structured so that FCX will retain control over op- erations and governance of PT-FI. This framework still requires definitive docu- mentation and approval from the Freeport Board of Directors and partners. New MSHA Assistant Secretary is Named On September 2, U.S. President Donald J. Trump announced his intent to nom- inate David G. Zatezalo of West Virginia to be the assistant secretary of labor for Mine Safety and Health. Prior to his re- tirement as chairman of Rhino Resources GP LLC in late 2014, Zatezalo had served as president and CEO, and was previous- Rio Tinto officially opened its Silvergrass mine in Western Australia on August 30. The $338 million Silvergrass project is the 16 th mine at Rio Tinto's iron ore oper- ations and will produce low-phosphorous ore crucial to maintaining Rio Tinto's pre- mium Pilbara Blend product. Full com- missioning is scheduled before the end of the year and the mine will add 10 million metric tons of annual production capacity to the company's portfolio. "Silvergrass is a great example of our value-over-volume approach in action as the mine will deliver the high-quality, low- cost ore used to maintain the world-class premium Pilbara Blend product our cus- tomers love so much," said Rio Tinto Chief Executive J-S Jacques. "Silvergrass is a further demonstration of our long-standing commitment to the Pilbara region in West- ern Australia where we've invested more than $20 billion over the past decade." Silvergrass is a satellite deposit locat- ed adjacent to the Nammuldi mine and is part of the Greater Nammuldi precinct. The brownfields expansion project will lower mine operating costs as a result of the construction of a 9-kilometer con- veyor system that will replace traditional road haulage routes linking Silvergrass to the processing plant at Nammuldi. "Silvergrass is another Rio Tinto proj- ect delivering value for Western Australia with design, construction and commis- sioning all undertaken by WA compa- nies," Rio Tinto Iron Ore chief executive Chris Salisbury. "Dozens of local busi- nesses have benefitted from the purchase of major items including modular build- ings, gantry cranes and a waste water treatment plant." A celebration was also held in Perth to mark the 30-year anniversary of Rio Tin- to and Sinosteel Corp.'s historic Channar Mining Joint Venture. Rio Tinto hosted Si- nosteel President Liu Andong and former Australian Prime Minister Bob Hawke, who was present at the original signing ceremony in 1987. "The strong partnership we have forged with Sinosteel over the past 30 years is one of Australia's most significant trading relationships," Salisbury said. "It has seen Rio Tinto deliver more than 250 million tons of iron ore to China, undoubtedly helping transform the Chinese economy." Rio Tinto Opens Silvergrass Iron Ore Mine in Western Australia West Australian Premier Mark McGowan (right) and Rio Tinto CEO J-S Jacques stand before one of the new haulers at Silvergrass. Rio Tinto Iron Ore CEO Chris Salisbury speaks at the grand opening of the Silvergrass iron ore project in Western Australia.