Freeport-McMoRan has agreed to sell its copper mine in the Democratic Republic of Congo to China Molybdenum Co. for $2.65 billion in its effort to reduce debt.
The company said in a statement that China Molybdenum will acquire Freeport’s indirect 56 percent stake in the Tenke Fungurume mine, which also produces cobalt, through a 70 percent interest in TF Holdings Ltd.
“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. 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,” said President and Chief Executive Officer Richard Adkerson.
In addition, Freeport has agreed to negotiate exclusively with CMOC to enter into definitive agreements to sell its interests in Freeport Cobalt, including the Kokkola Cobalt Refinery in Finland, for $100 million and the Kisanfu Exploration project in the Democratic Republic of Congo (DRC) for $50 million, the statement said.
Freeport Cobalt includes the large-scale cobalt refinery located in Kokkola, Finland, and related world-wide sales and marketing business, in which Freeport-McMoRan holds an effective 56 percent interest. Kisanfu is a copper and cobalt exploration project, located near Tenke in which Freeport-McMoRan holds a 100 percent interest, the statement added.