TBA GroupPort of BelleduneTMS Awards 2019Bühler GmbHTelestackMarine Fuels 360 China
  • Indonesia Coal Mining 2019
  • TMS Awards 2019
  • 5th Biennial LNG Bunkering
  • Marine Fuels 360 China
  • 25th Coaltrans Asia
  • Telestack

Rio Tinto completes sale of Grasberg interest

(Posted on 07/01/19)

Rio Tinto has completed the sale of its entire interest in the Grasberg mine in Indonesia for $3.5 billion, as part of a series of transactions involving Inalum (PT Indonesia Asahan Aluminium (Persero)), Indonesia’s state mining company, and Freeport McMoRan Inc.

Rio Tinto chief executive J-S Jacques said “This sale brings the total divestment proceeds received across the last two years to over $11 billion as we continue to strengthen the portfolio. Over that same period, we have returned or announced an intention to return over $18 billion to our shareholders, demonstrating our disciplined approach to capital allocation and commitment to continuing to deliver sector leading returns.”

The binding agreement was announced on 28 September 2018 and was subject to a number of conditions precedent, including the receipt of regulatory approvals, which have now been satisfied.

The board will announce how the proceeds from the sale will be allocated when Rio Tinto announces its 2018 full year results.

Prior to the completion of this transaction, the Grasberg mine in Indonesia was owned by Freeport McMoRan Inc., who held a 90.64 per cent interest, and Inalum, who owned the remaining 9.36 per cent.

In line with a participation agreement signed on 11 October 1996, Rio Tinto held a right to 40 per cent of production above a pre agreed level and 40 per cent of all production after 2022.

In 2017 the Grasberg mine produced 468kt and Rio Tinto’s share of mined copper was 5.7kt.
As at 31 December 2017, losses attributable to Rio Tinto’s interest in the Grasberg mine in Indonesia were $169 million and the gross assets of the company which holds such interest which is the subject of the transaction were $1,497 million. 

Latest News

Rio Tinto board change

(Posted on 27/06/19)

Dame Moya Greene has notified the Board of her intention to step down as a non-executive director of... Read more


RUSAL implements ‘BigData’ project in Siberian smelters

(Posted on 27/06/19)

RUSAL, one of the leading global aluminium producers, is launching a potroom control system as part... Read more


Hill Dickinson boosts commodities team

(Posted on 27/06/19)

Hill Dickinson has announce the strategic acquisition of two partners for its growing commodities team... Read more


BHP and Mitsubishi to reduce emissions

(Posted on 21/06/19)

BHP and Mitsubishi Development Pty Ltd have signed an MOU agreement to work together in the pursuit... Read more


CoBank outlines Swine Fever implications

(Posted on 21/06/19)

A May 2019 report from CoBank forecasts feed demand from China and Southeast Asia will drop significantly... Read more


Emissions cut on Cargill chartered fleet

(Posted on 17/06/19)

Cargill has released a collection of sustainability reports across four key businesses: Aqua Nutrition... Read more


Rio Tinto details on tailings facilities

(Posted on 17/06/19)

Rio Tinto has disclosed additional information in relation to its global tailings facilities at www.... Read more


Cargill progress to transparent cocoa sector

(Posted on 10/06/19)

Cargill’s 2017/2018 Cargill Cocoa & Chocolate Sustainability Report highlights the work being... Read more


CAMMU statement

(Posted on 10/06/19)

The Coalition of American Metal Manufacturers and Users (CAMMU), issued the following statement on the... Read more


Rusal to plant half a million trees

(Posted on 10/06/19)

RUSAL, one of the largest aluminium producers in the world, will plant 500 thousand trees in the Irkutsk... Read more


Indonesia Coal Mining 20195th Biennial LNG BunkeringCimbria Bulk Equipment A/S25th Coaltrans AsiaPort of StocktonCleveland Cascades Ltd
  • Port of Belledune
  • Vigan
  • Port of Stockton
  • TOC Events

Subscribe to our newsletter

Keep up to date with the latest global news in bulk cargo handling and shipping