On November 17, Freeport-McMoRan Inc. (FCX) announced it completed the indirect sale of its 70% interest in TF Holdings Ltd. (TFHL) to China Molybdenum Co. Ltd. for $2.65 billion in cash. TFHL is a Bermuda holding company that indirectly owns an 80% interest in Tenke Fungurume Mining S.A. (Tenke) located in the Democratic Republic of Congo. FCX had a 70% interest in TFHL and an effective 56% interest in Tenke.

FCX plans to use net proceeds from the transaction of approximately $2.65 billion to repay indebtedness, half of which will be used to repay borrowings under its unsecured bank term loan.

Under the terms of the agreement, FCX could also receive contingent consideration of up to $120 million in cash, consisting of $60 million if the average copper price exceeds $3.50 per pound and $60 million if the average cobalt price exceeds $20 per pound, both during 2018 and 2019.

FCX is a U.S.-based natural resources company and the world’s largest publicly traded copper producer. Its assets includes the Grasberg minerals district in Indonesia, mining operations in the Americas, including the large-scale Morenci minerals district in North America and the Cerro Verde operation in South America.

In related news, earlier this week, Lundin Mining Corp. entered into an agreement to sell its interest in TFHL to an affiliate of BHR Partners, a Chinese private equity firm, for $1.136 billion in cash and contingent consideration of up to $51.4 million. It is equal to the implied value of the company’s stake in TF Holdings based on the transaction between Freeport-McMoRan and China Molybdenum Co. Ltd. announced on May 9. Lundin Mining holds a 30% stake in TF Holdings, so an effective 24% interest in Tenke. See Lundin to Sell Interest in Tenke Fungurume for the full story.