Rio Tinto Limited (ASX:RIO) decided to sell its interest in Grasberg

Recently Rio, PT Indonesia Asahan Aluminium (Persero) (Inalum), and Freeport McMoran Inc. (FCX) entered into a non-binding agreement in relation to the future ownership of the Grasberg mine in Indonesia. In fact, all the parties to the agreement have committed to work towards agreeing and signing binding agreements before the end of the second half of 2018. According to the terms of the Agreement, the proposed principal terms for the sale of Rio Tinto’s entire interest in Grasberg to Inalum, Indonesia’s state mining company was decided at $3.5 billion. Whether this will be passed in the form of dividends by the company is yet to be seen.

Moreover, the agreement sets out a proposed transaction between FCX and Inalum so that the latter can buy an additional stake in Grasberg as well as additional terms relating to the future ownership and operation of Grasberg. Further, there is no certainty that a transaction will be completed and will be subject to approval by the necessary government regulators and authorities. The stock just moved down marginally by 0.13 per cent and traded at $79.845 as on 13 July 2018; 03:30 PM AEST.


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