Rio Tinto sells $3.5bn stake in Grasberg mine to Indonesian state miner

By Cecilia Jamasmie

World’s No.2 miner Rio Tinto (ASX, LON, NYSE: RIO) said Thursday it had sold its 40% stake in the world’s second-biggest copper mine, Grasberg, for $3.5 billion to Indonesia’s state mining company PT Inalum.

Rio had a joint venture with Freeport-McMoRan (NYSE:FCX), operator of Grasberg, for a 40% share of Grasberg’s production above specific levels until 2021 and 40% of all production after 2021.

Freeport separately said it will receive $350 million from PT Inalum after the stake sale.

The agreement will give Indonesia control of the mine and so end a long-dragged battle over the mining rights for the site.

More to come…

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From:: Mining.com

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