Freeport-McMoRan Sheds African Mine for $2.65 Billion

Commodities & Metals

Published: May 9, 2016 7:55 am

Last Updated: January 13, 2020 9:42 am

The asset fire sale continues at Freeport-McMoRan Inc. (NYSE: FCX). The gold and copper mining company announced Monday morning that it has reached an agreement to sell its interest in copper and cobalt projects in the Democratic Republic of Congo for $2.65 billion in cash, with a potential addition of $120 million dependent on copper and cobalt prices in 2018 and 2019.

China Molybdenum is buying Freeport’s 70% stake in TF Holdings, a Bermuda-based firm that owns an 80% stake in Tenke Fungurume Mining, giving Freeport an effective 56% interest in Tenke. The Chinese firm also acquires exclusive negotiating rights with Freeport for the sale of the U.S.-based firm’s stake in a cobalt refinery in Finland for $100 million and an exploration project in Congo for $50 million.

Since the beginning of 2016, Freeport has sold more than $4 billion in assets. The first was a 13% stake in the Morenci mine in Arizona to Sumitomo for $1 billion in February. In early March the company sold its stake in a Serbian copper mine to Toronto-based Lundin Mining for about $263 million.

Monday’s announced sale is subject to Lundin’s 90-day right of first offer. Lundin already holds a 24% stake in Tenke Fungurume Mining.