Rio Tinto confirms talks over sale of Grasberg mine in Indonesia

Rio Tinto confirmed on Wednesday that it is in discussions to sell its entire interest in the Grasberg copper mine in Indonesia to Inalum.

Rio Tinto said that discussions between it, Indonesia’s Inalum and Freeport are ongoing, "including as to price", following reports that it could go for $3.5bn.

"No agreement has been reached, and there is no certainty that binding agreements will be signed," it said.

RBC Capital Markets said a price of $3.5bn would be "a very good achievement considering the complicated situation surrounding the asset, the government ownership levels, the ongoing negotiations between Freeport and the Indonesian government and challenging social issues".

At 0935 BST, the shares were down 2.5% to 4,305p.