US-based Freeport-McMoRan Inc (FCX), listed on the NYSE, has announced that it has entered into a definitive agreement to sell its interests in TF Holdings Limited (TF Holdings) to China Molybdenum Co, Ltd (CMOC) for US$2,65 billion in cash and a contingent consideration of up to US$120 million depending on the copper price during the 24-month period between 2018 and 2019.
TF Holdings is a Bermuda holding company that indirectly owns an 80 % interest in Tenke Fungurume Mining S.A. (Tenke). FCX has a 70 % interest in TF Holdings and an effective 56 % interest in Tenke. Tenke Fungurume Mining S.A. operates the Tenke Fungurume mine, located 180 km north-west of Lubumbashi in the DRC’s Katanga Province.
Richard C. Adkerson, FCX’s President and Chief Executive Officer said, “This transaction is another significant step to strengthen our balance sheet and enhance value for shareholders. Since the start of 2016, we have announced over US$4 billion in asset sale transactions. We are committed to our immediate objective of reducing debt while retaining a large portfolio of high quality assets and resources and a leading position in the global copper industry.”
Tenke-Fungurume is a relatively new mine. Construction started in late 2006 on open-pit and oxide ore processing facilities designed to produce 115 000 t/a of cathode copper and over 8 000 t/a of cobalt in hydroxide. Commissioning of the copper facilities took place at the end of the first quarter 2009 with the cobalt hydroxide facilities following at the end of the second quarter.
A Phase 2 Expansion of the plant was completed in 2014, which has increased nameplate capacity to 195 000 t/a of copper cathode and 15 000 t/a of cobalt hydroxide.
Open-pit mining at Tenke-Fungurume involves surface miners, hydraulic shovels, front-end loaders and haul trucks. Mining is conducted at five open-pit deposits – Tenke, Kwatebala, Fwaulu, Shimbidi and Kabwe.
Mined ore is delivered to the processing plant, where it is crushed in a 24 ft SAG mill and sent through a multi-phase process to extract copper and cobalt. Process steps include agitated leaching, thickening and Counter Current Decantation (CCD). Solution Extraction/Electrowinning (SX/EW) is employed to produce copper sheets known as electrolytic copper cathodes. Cobalt extraction involves a three-stage purification process to produce the product cobalt hydroxide.
The current operation provides employment to approximately 3 400 full time operational workers and 4 200 contractors. Approximately 98 % of the operational employees and 93 % of the contract work force are DRC citizens.
