China Molybdenum Co $2.65 billion acquisition of 56% of Tenke Fungurume copper-cobalt mine

Overview:

• The subsidiary of Chinese molybdenum producer China Molybdenum Co, CMOC Limited, has agreed to acquire a 100% interest in the Tenke Fungurume copper-cobalt mine in the the Democratic Republic of Congo (DRC) from mining company Freeport-McMoRan for $2.65 billion, which holds a 56% stake. 
• In addition to this Freeport has agreed to sell its interest in the Kokkola Cobalt Refinery in Finland for $100 million and the Kisanfu exploration project in DRC for $50 million.
• This is the largest transaction in the mining sector globally in 2016, and illustrates a renewed confidence in the copper industry following a difficult period for base metals. 
• This is CMOC's second acquisition in recent times following its acquisition of Anglo American's niobium and phosphates businesses in Brazil for $1.5 billion. 
• CMOC were advised on financial aspects of the deal by Citigroup.
• Osler Hoskin & Harcourt (Marc Kushner) acted as global legal advisers to the acquirer. 
• Herbert Smith Freehills (Stéphane Brabant and Peter Leon) also advised the acquirer from its offices in Paris and Johannesburg.
• King & Wood Mallesons (Tim Bednall, Susan Ning, Xu Ping, Rececca Chao, Raymond Wong, Stephen Minns, Paul Schroder, Jingchuan Zhao) also advised the acquirer. 
• Covington & Burling (Witney Schneidman) also advised the acquirer from its offices in New York and Washington.
• Etude Kabinda Avocats (Alex Kabinda Ngoy) acted for the acquirer as DRC counsel.
• Davis Polk & Wardwell (Marc Williams) advised Freeport-McMoRan on the acquisition from its New York office. 

John Crabb - Journalist - EMEA