Freeport-McMoRan to sell African interests for $2.7b

Freeport-McMoRan to sell African interests for $2.7b

Freeport-McMoRan (NYSE:FCX), the US’s largest mining company by market value announced it would sell its stake in an African mining operation to China Molybdenum Co for US$2.65 billion in cash.

Aiming to pay down debt, the firm said it would sell its interests in TF Holdings Limited, a Bermuda holding firm that indirectly owns an 80 per cent interest in the Tenke Fungurume mine in the Democratic Republic of Congo to the Chinese company.

Freeport has a 70 per cent stake in TF Holdings and a 56 per cent interest in Tenke.

The mining company announced it would cut 25 per cent of its workforce as part of a restructuring plan last month. The firm also reported it has more than $4 billion in asset-sale transactions since the start of this year.

The TF Holdings deal is currently subject to approvals and is anticipated to close in the fourth quarter of the year.

In addition, Freeport publicised negotiations with China Molybdenum to sell its interests in the Kokkola Cobalt Refinery in Finland for $100 million. The firm is also looking to sell the Kisanfu Exploration project in the DRC for $50 million.