FILE PHOTO: The logo of copper miner Freeport-McMoRan Inc is displayed on their offices in Phoenix, Arizona, U.S. June 30, 2022. REUTERS/Ernest Scheyder/File Photo

JAKARTA (Reuters) -Indonesia expects to sign a deal with Freeport-McMoRan soon regarding a plan for the firm to sell a 12% stake in its Indonesian unit PT Freeport Indonesia to a local partner, the investment minister said on Wednesday.

The Phoenix-based Freeport also said on Tuesday that it remains in discussions with the Indonesian government regarding the rights to operate the Grasberg copper and gold mine past 2041.

Minister Rosan Roeslani said that Freeport has basically agreed on a number of points during the talks.

"This is just an administrative process but we have already agreed on all of points (of discussions)... Once it is done, we can proceed with the signing," Roeslani told reporters.

The state mining holding company MIND ID currently owns 51% of PT Freeport Indonesia but operations are handled by Freeport.

Grasberg is the world's largest gold mine and second-largest copper mine.

Indonesia mining minister Bahlil Lahadalia previously said it was important to reach a deal to extend the Freeport mining permit to ensure the company could start investing in exploration for future resources to be extracted from Grasberg.

The update on the negotiations came after Freeport declared force majeure at Grasberg last week due to torrential mudslides, which killed two workers.

Grasberg may not return to pre-accident operating rates until at least 2027, Freeport said.

(Reporting by Fransiska Nangoy, Ananda Teresia; Editing by John Mair)