Rio Tinto has completed the sale of its entire interest in the Grasberg mine in Indonesia for $3.5 billion.
The transaction is 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.