Freeport and China Moly Terminate Discussions on Cobalt Assets

    Author Caroline HarrisPosted on Categories Cobalt, Basic Materials, Metals & MiningTags , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
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    On Wednesday, Phoenix-based company Freeport-McMoRan Inc (NYSE:$FCX) and China Molybdenum Co Ltd disclosed that they would terminate talks on China Moly’s acquisition of Freeport’s assets in cobalt.

    According to a Freeport representative, China Moly did have a right to bargain for Freeport’s cobalt assets, including the right to obtain the Kokkola Cobalt Refinery in Finland and the Kisanfu exploration project in the DRC. However,  this period ended on February 28 of 2017.

    Last month, China Moly had settled to pay $2.65 billion for Freeport’s shares in the Tenke Fungurume mine, located in the southern Congolese copper belt. This is the largest copper deposit in the world and it has been producing copper since 2009.

    In an attempt to cut its distended debt load, Freeport, also known as the biggest publicly traded copper miner in the world, sold its 70% share in TF Holdings Ltd.  It’s worth noting that TF Holdings, a Bermuda-based holding company,  owns an 80% interest  in the Tenke Fungurume Mining SA.

    As reported by Eric Kinneberg, a representative for Freeport-McMoRan Inc, “Freeport Cobalt remains a strong, viable business with a long-term cobalt supply agreement with Tenke Fungurume of well over 10 years, providing for a comprehensive mine-to-market solution for cobalt producers.” Kinneberg did not disclose whether or not Freeport would be working with other parties interested in the company’s cobalt assets.

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    Author Caroline Harris
    About the author: Caroline Harris is a third-year student at Capilano University in North Vancouver, Canada. Having already completed an Associates Degree in Psychology, Caroline is now finishing her Bachelor's degree in Communications. In preparation for working in the advertisement sector, Caroline is writing financial content and analysis. On a daily basis, Caroline works on articles regarding the following topics: finance, cryptocurrency, technology, and politics.