Consequently, it has sold its interest in Tenke mine.
TF Holdings is a Bermuda holding company that indirectly owns an 80% interest in Tenke Fungurume Mining (Tenke), located in the Democratic Republic of Congo. Freeport had a 70% interest in TFHL and an effective 56% interest in Tenke.
Freeport plans to use net proceeds from the transaction of approximately $2.65 billion to pay its debt; in fact half of the amount will be used to repay borrowings under Freeport’s unsecured bank term loan.
Under the terms of the agreement, Freeport could also receive a contingent consideration of up to $120 million in cash, if the average copper price exceeds $3.50 per pound and the average cobalt price exceeds $20 per pound during 2018 and 2019.
Freeport is a US-based natural resources company with a leading global portfolio of mineral assets. Freeport is also the world’s largest publicly traded copper producer.
Freeport’s portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits and significant mining operations in the Americas, including the large-scale Morenci minerals district in North America and the Cerro Verde operation in South America.
On Thursday Lundin Mining announced it had entered into a definitive agreement to sell its indirect interest in TF Holdings to an affiliate of BHR Partners, a Chinese private equity firm.