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Rio Tinto To Sell Its Interest In Grasberg Mine In Indonesia - Quick Facts

Rio Tinto plc (RTPPF.PK,RIO.L,RIO,RTNTF.PK) announced that the company, PT Indonesia Asahan Aluminium (Persero) (Inalum), and Freeport McMoran Inc. (FCX) have signed a non-binding agreement in relation to the future ownership of the Grasberg mine in Indonesia. The Heads of Agreement details the proposed principal terms for the sale of Rio Tinto's entire interest in Grasberg to Inalum, Indonesia's state mining company, for $3.5 billion.

The agreement also sets out a proposed transaction between FCX and Inalum for the latter to buy an additional stake in Grasberg as well as additional terms relating to the future ownership and operation of Grasberg.

The Grasberg mine in Indonesia is currently owned by FCX, who hold a 90.64 percent interest, and the Government of Indonesia, who own the remaining 9.36 percent. In line with a participation agreement signed on 11 October 1996, Rio Tinto currently has a right to 40 percent of production above a pre agreed level and 40 percent of all production after 2022.

by RTTNews Staff Writer

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