China Molybdenum has bought a 95pc share in the undeveloped Kisanfu copper-cobalt project in the Democratic Republic of Congo (DRC) from Freeport McMoran for $550mn.
According to a release from Freeport, the sale was part of its strategy to divest from its African assets to strengthen its financial position. The company will add about $350mn to its Q4 earnings from this deal after tax. According to preliminary estimates, the mine holds about 6.28mn mt of copper reserves, at an unknown grade. The DRC government holds the remaining 5pc of project.
China Moly also acquired a 56pc share in Freeport’s Tenke Fungurume copper mine in the DRC in 2016. The deposit holds about 857mn mt of mineral reserves, grading 2.9pc copper.