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7/12, 2:49 PM (Source: TeleTrader.com)
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Rio Tinto agrees to sell stake in Grasberg mine for $3.5B

Rio Tinto Group announced on Thursday it has agreed to sell the Grasberg mine in Indonesia to the state-owned PT Indonesia Asahan Aluminium (Inalum) in a deal worth $3.5 billion.

The two companies signed a non-binding agreement on the gold and copper mine ownership with Freeport McMoran, which has a 90.6% stake in Grasberg. The government of Indonesia holds a 9.36% interest in the mine, while Rio Tinto has a right to 40% of production above a pre-agreed level and 40% of all production after 2022. All three sides noted they hope to sign a binding agreement before the end of the year, but stressed there is "no certainty" the deal will be struck as terms are still to be defined.

Meanwhile, Inalum also reached a deal with Freeport to buy a part of its stake in Grasberg.

Breaking the News / NP