Chinese tighten grip on Tenke mine as Lundin agrees to sale stake for $1.14bn

After weeks of deliberation, Canada’s Lundin Mining (TSX:LUN) said Tuesday it will sell its minority stake in the African copper mine Tenke Fungurume to a Chinese private-equity firm for $1.14 billion in cash.

The deal is a result of the Toronto-based miner’s review of strategic options for its interest in TF Holdings Ltd., the Bermuda holding company that indirectly owns an 80% interest in the massive mine, located in the Democratic Republic of the Congo.

Originally, Lundin had until mid-September to decide whether to allow Freeport-McMoRan (NYSE:FCX) to go ahead with the sale of Tenke to China Molybdenum (CMOC) for up to $2.65 billion, a crucial part of the Phoenix-based company's debt reduction program.

But Lundin, which had has the right to acquire Freeport's 56% interest in Tenke instead of leaving it to China Moly, was granted four extensions since then.

More to come…

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