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Rio reportedly in Grasberg exit talks

Mining giant Rio Tinto (LN:RIO) is reportedly in talks with Indonesian groups about a possible exit from its interest in the world’s second largest copper mine.
Rio reportedly in Grasberg exit talks Rio reportedly in Grasberg exit talks Rio reportedly in Grasberg exit talks Rio reportedly in Grasberg exit talks Rio reportedly in Grasberg exit talks

Rio is said to be looking for a Grasberg exit

Staff reporter

Rio has held talks with groups including state-owned PT Indonesia Asahan Aluminium (Inalum) about the possible sale of its income stream that is part of its joint venture with mine operator Freeport-McMoRan (US:FCX), Bloomberg reported.

News of the talks comes as Freeport remains at loggerheads with Indonesia over the terms of the valuation, timing and structure of the tentatively agreed 51% divestment of its Indonesian subsidiary.

Under an agreement struck about 20 years ago to help Freeport fund a Grasberg expansion, Rio is entitled to cash flows on a 40% share of production above specific levels until 2021 and on 40% percent of all production after that.

Bloomberg reported the state enterprises ministry said Inalum would convert into a mining holding company and lead Indonesia's purchase of the stake in Freeport.

Indonesia is keen to see the divestment concluded within months.