Shares of Freeport-McMoRan Inc. (NYSE: FCX) traded down more than 5% in mid-afternoon trading Friday after gaining nearly 40% in the month of October. Of course, that follows a drop of nearly 67% since the beginning of the year. Trading at around $12.50, the stock is still down about 47% from its level on January 2nd.

Low copper prices play a role in Freeport’s troubles. The price of copper has fallen from about $3 a pound a year ago to about $2.40, but Freeport’s bigger problem has been its relationship with the government of Indonesia where the company operates its Grasberg mine, one of the world’s largest copper mines.

On October 8th, Freeport issued a press release indicating that the Indonesian government had “assured [Freeport] that the Government will approve the extension of operations beyond 2021, including the same rights and the same level of legal and fiscal certainty provided under its Contract of Work.” Just 8 days later, the government’s minister of mines is casting doubt on that assurance, according to a report from Reuters.

Freeport wants to spend $18 billion to build the world’s largest underground mine at Grasberg, but before it does so it wants the government to guarantee that it will have a new contract to work the mine past 2021. Under Indonesian law, negotiations on the current contract which expires in 2021 cannot begin until 2019. Freeport does not want to begin making investments in the mine unless it has a contract extension.

According to Reuters, the mines minister may be overruled by the country’s chief natural resources minister who has said that negotiations will not begin until 2019. The mines minister responded that the senior resources minister and the country’s “security czar,” who also opposes an early extension of Freeport’s contract, have no authority to decide such matters.

Indonesian President Joko Widodo is set to visit the U.S. on October 25th, and among his first stops will be a meeting with Freeport executives according to Reuters. That may help to clear up the issue, but don’t count on it.

Freeport shares traded down about 5.2% late Friday at $12.33 in a 52-week range of $7.76 to $31.75. The consensus price target on the stock is $14.47.

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