Freeport will sell Tenke Fungurume to China Molybenum for $2.65bn [UPDATED]

Freeport-McMoRan will sell its stake in the holding company for the Tenke Fungurume copper-cobalt mine in the Democratic Republic of Congo (DRC) to China Molybdenum.

The deal will be for $2.65 billion in cash and up to $120 million in potential future market-linked payouts.
In addition to the sale of its stake in Bermuda-based TF Holdings, Freeport has also agreed to enter exclusive talks with China Molybdenum to sell its interests in Freeport Cobalt for $150 million, which will give China Moly control of the Kokkola cobalt refinery in Finland and the Kisanfu exploration project in the DRC.
China Moly would also take over the marketing responsibilities for Freeport Cobalt in the event of a sale, the Arizona-based mining group told investors on Monday May 9.
“This transaction is another significant step to strengthen our balance sheet and enhance value for shareholders. Since the start of 2016, we have announced over $4 billion in asset sale transactions,” Freeport ceo and president Richard K Adkerson said in a statement.

“We are pleased to have the...

Published

Mark Burton

May 09, 2016

14:50 GMT

London