China Molybdenum Co. Ltd. signed a deal with Chinese private equity firm BHR to support the latter's acquisition of Lundin Mining Corp.'s indirect 24% stake in the massive Tenke Fungurume copper-cobalt mine in the Democratic Republic of Congo, Reuters reported Jan. 22.
The country's Mining Minister Martin Kabwelulu confirmed that state miner Gecamines SARL, which holds a 20% stake in Tenke, withdrew objections over Freeport-McMoRan Inc. selling its interest in the mine to China Molybdenum for US$2.65 billion in cash.
Kabwelulu added that Gecamines also dropped objections over Lundin off-loading its Tenke project stake to BHR in a US$1.14 billion deal inked in November 2016, Kabwelulu told Reuters.
China Molybdenum said in a statement that it "will provide financial guarantees and other assistance to BHR" ensuring the completion of the timely acquisition of Lundin's Tenke interest.
Meanwhile, as part of the agreement, China Molybdenum will have the right to purchase BHR's stake at a pre-agreed price if the equity firm leaves the project.
According to the report, Gecamines representatives could not be immediately reached for comment. It was unclear what compensation, if any, the miner had received.