China Molybdenum Co., or CMOC, has inked a stake transfer deal with BHR Newwood Investment Management, buying 100% interest in BHR DRC, which owns 24% in copper mine Tenke Fungurume Mining S.A. (TFM), located in Katanga Province in the Democratic Republic of the Congo, the Chinese producer in Henan Province said in a filing to Shanghai Stock Exchange last Friday.
The moly and copper giant said its wholly-owned subsidiary China Molybdenum (Hong Kong) on Friday signed a stake transfer deal with BHR Newwood, spending nearly $1.136 billion, buying 100% of BHR DRC for 24% in the copper mine in DRC, following the inking of a cooperation framework agreement back in January 20, 2017.
CMOC said Tenke Fungurume is one of the world's currently running big scale copper and cobalt mines with high ore grade, which has comparatively higher profit levels, with vast future growth potential that is consistent with its strategic goal to expand and diversify its international portfolio with high quality assets in prolific mining regions that are conducive to significant long-term growth.
On November 16, 2016, CMOC had bought 56% indirect stake in TFM from copper miner Freeport-McMoRan for $2.65 billion, CMOC data showed.
TFM deals in exploration, mining, refining, processing and selling copper and cobalt in a mining concession that covers nearly 1,600 sq km, with proven ore reserves of 831.5 million mt, with average copper and cobalt ore grade of 2.94% and 0.28%, respectively, CMOC data showed.
To be in line with its expanding business scope, CMOC plans in 2019 to produce 170,000-200,000 mt copper metal, 16,500-19,000 mt cobalt metal, as well as 14,500-16,000 mt of moly metal, its data showed.
