COPPER MINES AND MINING – INDONESIA

Rio pushes closure of Grasberg deal into first half of next year

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 1-Oct-18

PT Indonesia Asahan Aluminium has signed binding agreements with Rio Tinto and Freeport McMoran to assume control of the Grasberg copper mine in Indonesia. However, the agreements are still subject to a number of conditions, and Rio Tinto has advised that the transaction may not be settled until mid-2019. Rio Tinto will receive $US3.5bn ($4.8bn) for its stake in the mine, and much of the proceeds are expected to be returned to shareholders.

CORPORATES
RIO TINTO LIMITED – ASX RIO, FREEPORT-McMORAN COPPER AND GOLD INCORPORATED, PT INDONESIA ASAHAN ALUMINIUM, BHP BILLITON LIMITED – ASX BHP, BP PLC, MERIT ENERGY

Grasberg a done deal for Rio and Indonesia

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 13-Jul-18

Freeport McMoran has entered into a heads of agreement with the Indonesian Government to reduce its stake in the Grasberg copper mine from around 91 per cent to just under 50 per cent. Control over its divested stake will be assumed by the state-owned PT Indonesia Asahan Aluminium Persero. Rio Tinto does not have a direct stake in Grasberg, but it owns the rights to a certain amount of the mine’s production, and it could potentially benefit from the change of ownership to the tune of more than $US3bn ($4.1bn).

CORPORATES
RIO TINTO LIMITED – ASX RIO, FREEPORT-McMORAN COPPER AND GOLD INCORPORATED, PT INDONESIA ASAHAN ALUMINIUM, NEWCREST MINING LIMITED – ASX NCM

Rio nears sale of Grasberg mine stake

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Original article by Matt Chambers
The Australian – Page: 23 : 4-Jul-18

Rio Tinto is believed to have reached agreement on a deal to sell its stake in Indonesia’s Grasberg copper and gold mine to the state-owned Indonesia Asahan Aluminium. The Indonesian Government must still strike a deal with the mine’s operator, Freeport McMoran, as part of its push to take a minimum stake of 51 per cent in the project. Rio Tinto may gain around $US3.5bn from the sale of its interest in the mine, and the proceeds are tipped to be returned to shareholders via a buyback or increased dividend payout.

CORPORATES
RIO TINTO LIMITED – ASX RIO, PT INDONESIA ASAHAN ALUMINIUM PERSERO, FREEPORT-McMORAN COPPER AND GOLD INCORPORATED, MACQUARIE GROUP LIMITED – ASX MQG, INDONESIA. DEPT OF STATE-OWNED CORPORATIONS

Rio Tinto Grasberg deal may deliver $4.3bn windfall

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Original article by Matt Chambers
The Australian – Page: 20 : 1-Feb-18

Rio Tinto is scheduled to take up a 40 per cent stake in Indonesia’s Grasberg copper and gold mine in 2022. Rio Tinto has a book value of $US1.15bn on its stake in the mine, but Paul Young of Deutsche Bank suggests that its stake could potentially fetch up to $US3.5bn ($A4.3bn) if the Indonesian Government pays market value. Meanwhile, the Centre for Research on Multinational Corporations will shortly release a report on Rio Tinto’s tax payments associated with the Oyu Tolgoi copper and gold mine in Mongolia.

CORPORATES
RIO TINTO LIMITED – ASX RIO, DEUTSCHE BANK AG, CENTRE FOR RESEARCH ON MULTINATIONAL CORPORATIONS, OYU TOLGOI LLC, CREDIT SUISSE (AUSTRALIA) LIMITED, FREEPORT-McMORAN COPPER AND GOLD INCORPORATED

Rio Tinto hit with more delay for Indo copper

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 18 : 6-Feb-17

Freeport-McMoran has advised that Rio Tinto’s share of production from the Grasberg copper and gold mine is unlikely to increase until at least 2023. Rio was slated to receive 40 per cent of the Indonesian mine’s output from 2021 under an agreement between the two companies, but Freeport has attributed the expected delay to factors such as a series of interruptions to production at the mine in the last several years. Meanwhile, Rio is forecast to post EBITDA of $US13bn and revenue of $US34.3bn for calendar 2016.

CORPORATES
RIO TINTO LIMITED – ASX RIO, FREEPORT-McMORAN COPPER AND GOLD INCORPORATED, CREDIT SUISSE (AUSTRALIA) LIMITED, BLOOMBERG LP