Rio has held talks with groups including state-owned PT Indonesia Asahan Aluminium (Inalum) about the possible sale of its income stream that is part of its joint venture with mine operator Freeport-McMoRan (US:FCX), Bloomberg reported.

News of the talks comes as Freeport remains at loggerheads with Indonesia over the terms of the valuation, timing and structure of the tentatively agreed 51% divestment of its Indonesian subsidiary.

Under an agreement struck about 20 years ago to help Freeport fund a Grasberg expansion, Rio is entitled to cash flows on a 40% share of production above specific levels until 2021 and on 40% percent of all production after that.

Bloomberg reported the state enterprises ministry said Inalum would convert into a mining holding company and lead Indonesia's purchase of the stake in Freeport.

Indonesia is keen to see the divestment concluded within months.