Rio Tinto to sell interest in Grasberg mine for $3.5bn

Rio Tinto has agreed to sell its stake in the Grasberg copper mine to Indonesia’s state mining company PT Inalum for $3.5bn.

"All parties have committed to work towards agreeing and signing binding agreements before the end of the second half of 2018," Rio said.

It added that given the terms that remain to be agreed, there is no certainty that a transaction will be completed and any final agreements will be subject to approval by the necessary government regulators and authorities.

Rio had a joint venture with Freeport McMorgan, which operates the Grasberg mine, for a 40% share of the mine’s production above an agreed level until 2021.

Meanwhile, Freeport has agreed that Inalum would buy an additional stake in the Grasberg mine.

At 1315 BST, Rio shares were up 0.5% to 4,040.50p.