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UPDATE 1-Freeport to sell Tenke copper interest to China Molybdenum

Published 2016-05-09, 07:23 a/m
© Reuters. UPDATE 1-Freeport to sell Tenke copper interest to China Molybdenum
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May 9 (Reuters) - Freeport-McMoRan Inc FCX.N said on
Monday it would sell its 70 percent stake in a unit controlling
the Tenke copper project in the Democratic Republic of Congo
(DRC) to China Molybdenum Co Ltd (CMOC) 603993.SS for $2.65
billion.
Freeport, like other big miners has been selling assets to
cut debt, while China has been snapping up commodity assets
around the world to feed its massive economy.
China is heavily reliant on imported copper for its smelters
and Chinese companies have been looking to buy overseas mines.
CMOC, one of China's largest producers of molybdenum, agreed
last month to pay $1.5 billion to buy Anglo American Plc's
AAL.L niobium and phosphates business in Brazil.
Freeport said on Monday it would receive another $60 million
from CMOC if the average copper price exceeds $3.50 per pound
and $60 million if the average cobalt price exceeds $20 per
pound between 2018 and 2019.
The U.S. miner owns 70 percent of TF Holdings Ltd, a Bermuda
holding company that indirectly owns an 80 percent interest in
Tenke Fungurume Mining SA.
Freeport, the world's biggest listed copper producer, has an
effective 56 percent interest in the Tenke project, one of the
world's largest copper-cobalt deposits.
Lundin Mining Corp LUN.TO holds a 24 percent stake in the
project and the DRC's state mining company holds 20 percent.
Freeport also said it had agreed to negotiate exclusively
with CMOC for the sale of its interests in Freeport Cobalt,
including the Kokkola Cobalt Refinery in Finland and the Kisanfu
Exploration project in the DRC.
Freeport, whose debt stands at nearly $21 billion, has
announced asset sales worth more than $4 billion this year.

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