Reuters reports that China Molybdenum Co Ltd said it has agreed to purchase a holding company for $1.14 billion in order to increase its control in Democratic Republic of Congo’s massive Tenke copper mine.
Already a majority owner of Tenke, China Molybdenum said it will have an 80 percent stake in the mine after the acquisition of BHR Newwood DRC Holdings Ltd, a holding company set up by private equity firm BHR to buy a 24 percent stake in Tenke in 2017. In 2016, the company previously bought 56 percent stake in Tenke for $2.65 billion from Freeport McMoRan Inc.
China Molybdenum said “the purchase will increase the company’s control in Tenke copper mine and further enhance company’s profitability and resilience”.
China Molybdenum had assisted BHR in its purchase of the 24 percent stake in Tenke and as part of the deal, the company has the right to purchase BHR’s stake in the mine at a pre-agreed price if BHR left the project.
Gecamines, Congo’s state-miner holds the remaining 20 percent stake in Tenke, one of the world’s largest copper mines with proven and probable reserves of 3.8 million tonnes of contained copper.