New York, May 09, 2016 -- Moody's Investors Service said that Freeport-McMoRan Inc.'s (FCX -- B1 Corporate Family Rating) announcement that a definitive agreement for the sale of its interests in TF Holdings Ltd (indirectly owns 80% of Tenke Fungurume Mining S.A. or "Tenke") is credit positive. FCX's 70% ownership in TF Holdings Ltd gives it an effective 56% interest in Tenke. This interest is being sold to China Molybdenum Co., Ltd (CMOC - unrated) for $2.65 billion in cash. There is additional contingent consideration to be received depending upon average copper and cobalt prices over a 24 month period between 2018 and 2019. The transaction is expected to close by December 2016. Tenke is a copper/cobalt mine located in the Democratic Republic of Congo (DRC). FCX also announced that it would negotiate with CMOC, on an exclusive basis, for the sale of the company's interests in Freeport Cobalt and the Kisanfu Exploration project in the DRC.
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