16 Nov Lundin agrees to $1.14 billion sale of TF Holdings interest
Lundin Mining (TSX:LUN) will sell its minority stake in an African copper mine to a Chinese private-equity firm for US$1.14 billion.
The deal will see Lundin relinquish its 30% interest in TF Holdings, the holding company which indirectly owns 80% of the Tenke Fungurume mine in the Democratic Republic of Congo.
Congo’s state miner Gecamines owns 20% of the holding company, while in May Freeport-McMoran agreed to sell its 56% stake to China Molybdenum for up to $2.65 billion as part of a debt-reduction plan.
Lundin had until mid-September to decide whether to approve the Freeport sale but was granted four extensions and the company was left with no option but to allow the deal, supplant the offer or sell its stake.
The huge mine will now be 80% owned by Chinese interests.
“The decision to sell our minority interest in Tenke has been arrived at following a careful and lengthy consideration of all options open to us. It was a difficult decision, respecting the 20 years of Lundin involvement in Tenke, and the special nature of this world class asset,” said Paul Conibear, Lundin president and CEO.
“The sale will enable Lundin Mining to advance its strategy to incrementally grow the company with projects and operations we control, while maintaining a strong balance sheet.”