Freeport-McMoRan Completes Sale of 13% Interest in Morenci Mine for $1.0 Billion in Cash
May 31 2016 - 10:28AM
Business Wire
Freeport-McMoRan Inc. (NYSE: FCX) announced today that it has
completed its previously announced sale of a 13 percent interest in
its Morenci unincorporated joint venture to Sumitomo Metal Mining
Co. Ltd. (SMM) for cash consideration of $1.0 billion. The
transaction has an effective date of May 31, 2016.
The Morenci unincorporated joint venture is now owned 72 percent
by FCX, 15 percent by Sumitomo Metal Mining Arizona Inc. (SMMAz is
owned 80 percent by SMM and 20 percent by Sumitomo Corporation),
and 13 percent by SMM Morenci Inc. that is fully owned by SMM.
FCX plans to use net proceeds from the transaction of
approximately $1.0 billion to repay $0.5 billion in borrowings
under its bank term loan with the balance to reduce amounts drawn
under its revolving credit facility. FCX expects to record an
approximate $0.6 billion after-tax gain on the transaction in
second-quarter 2016.
FCX is a premier U.S.-based natural resources company with an
industry-leading global portfolio of mineral assets and significant
oil and gas resources. FCX is the world's largest publicly traded
copper producer.
FCX's portfolio of assets includes the Grasberg minerals
district in Indonesia, one of the world's largest copper and gold
deposits; significant mining operations in the Americas, including
the large-scale Morenci minerals district in North America and the
Cerro Verde operation in South America; the Tenke Fungurume
minerals district in the Democratic Republic of Congo; and
significant U.S. oil and gas assets principally in the Deepwater
Gulf of Mexico and in California. Additional information about FCX
is available on FCX's website at "fcx.com."
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version on businesswire.com: http://www.businesswire.com/news/home/20160531006007/en/
Freeport-McMoRan Inc.Financial
Contacts:Kathleen L. Quirk,
602-366-8016orDavid P. Joint,
504-582-4203orMedia Contact:Eric E. Kinneberg,
602-366-7994
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