Freeport-McMoran to sell Tenke copper stake to China Molybdenum

Freeport-McMoran has agreed to sell its interest in TF Holdings to China Molybdenum for $2.65bn in cash.

TF Holdings is a Bermuda-based holding company that indirectly owns an 80% stake in the Tenke Fungurume copper-cobalt mine in the Democratic Republic of Congo. Freeport has a 70% interest in TF Holdings and an effective 56% stake in Tenke.

In addition, Freeport – which produces gold, silver and copper – has agreed to negotiate exclusively with China Molybdenum to enter into definitive agreements to sell its interests in Freeport Cobalt, including the Kokkola cobalt refinery in Finland, for $100m and the Kisanfu Exploration project in the Democratic Republic of Congo for $50m.

President and chief executive officer Richard C. Adkerson said: “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 $4bn in asset sale transactions.

“We are committed to our immediate objective of reducing debt while retaining a large portfolio of high quality assets and resources and a leading position in the global copper industry.”

The TF Holdings transaction is expected to close in the fourth quarter of this year, subject to regulatory approvals, CMOC shareholder approval and other customary closing conditions.

Freeport does not expect a material gain or loss on the transaction and plans to use the net proceeds to repay debt.