Sept 30 (Reuters) - Freeport-McMoRan ( FCX ) said on

Tuesday it remains in discussions with the government of

Indonesia regarding rights to operate the Grasberg copper and

gold mine past 2041.

News reports earlier on Tuesday had indicated that

Phoenix-based Freeport had agreed to divest a 12% stake in its

Indonesian unit, known as PT Freeport Indonesia. Grasberg is the

world's largest gold mine and second-largest copper mine.

PT Freeport Indonesia is 51% owned by Indonesia's government

but operated by Freeport, one of the world's largest copper

miners with operations across the Americas, Asia and Europe.

In response to a request from Reuters, Freeport said it

continues "to advance discussions with the government of

Indonesia" regarding an extension of operating rights past 2041.

"The parties are working to conclude an agreement that would

be beneficial to all stakeholders. (Freeport) will issue a

formal announcement upon successful completion of an agreement,"

a Freeport spokesperson said.

Negotiations come after Freeport declared force majeure at

Grasberg last week due to torrential mudslides that killed two

workers earlier this month and injured others.

Freeport has said that Grasberg may not return to

pre-accident operating rates until at least 2027. The mine's

temporary closure is expected to crimp global copper supplies

for several years.