Overview:
- The subsidiary of Chinese molybdenum producer China Molybdenum Co, CMOC Limited, has agreed to acquire a 100% interest in the Tenke Fungurume copper-cobalt mine in the the Democratic Republic of Congo (DRC) from mining company Freeport-McMoRan for $2.65 billion, which holds a 56% stake.
- In addition to this Freeport has agreed to sell its interest in the Kokkola Cobalt Refinery in Finland for $100 million and the Kisanfu exploration project in DRC for $50 million.
- This is the largest transaction in the mining sector globally in 2016, and illustrates a renewed confidence in the copper industry following a difficult period for base metals.
- This is CMOC's second acquisition in recent times following its acquisition of Anglo American's niobium and phosphates businesses in Brazil for $1.5 billion.
- CMOC were advised on financial aspects of the deal by Citigroup.
- Osler Hoskin & Harcourt (Marc Kushner) acted as global legal advisers to the acquirer.
- Herbert Smith Freehills (Stéphane Brabant and Peter Leon) also advised the acquirer from its offices in Paris and Johannesburg.
- King & Wood Mallesons (Tim Bednall, Susan Ning, Xu Ping, Rececca Chao, Raymond Wong, Stephen Minns, Paul Schroder, Jingchuan Zhao) also advised the acquirer.
- Covington & Burling (Witney Schneidman) also advised the acquirer from its offices in New York and Washington.
- Etude Kabinda Avocats (Alex Kabinda Ngoy) acted for the acquirer as DRC counsel.
- Davis Polk & Wardwell (Marc Williams) advised Freeport-McMoRan on the acquisition from its New York office.
John Crabb - Journalist - EMEA
