China Molybdenum Co Ltd (CMOC) announced that it has inked a new deal with BHR, a Chinese private equity firm. The new agreement deals with China Molybdenum assisting BHR in acquiring stake in Tenke copper mine, located in Democratic Republic of Congo. The deal was announced on Sunday.

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BHR contemplates acquiring 24 percent stake in the massive copper mine. China Molybdenum recently became the majority owner of the mine as its transaction with Freeport McMoRan Inc. was approved by the Congo state miner Gecamines. The news was confirmed by Congo's mining minister Martin Kabwelulu.

The deal had taken place in May and is expected to be worth $2.65 billion. Gecamines had raised objections against the agreement. China Molybdenum had acquired 56 percent stake from Freeport. It is not clear whether Gecamines received any compensation for dropping the objections.

Gecamines owns 20 percent stake in the mine. It had filed the case against the transaction in Paris, on the ground that it had the right to pre-empt the deals. Gercamines had also demanded that the changes to indirect ownership of the mine to be blocked, unless approved by it.

China Molybdenum said, "CMOC will provide financial guarantees and other assistance to BHR to ensure that BHR's acquisition of Lundin's 24 percent indirect stake in (Tenke) completes successfully in a timely manner."

The agreement also gives China Molybdenum the right to acquire BHR's stake at a predetermined price in case the private equity firm leaves the project. Tenke mine is believed to have proven and probable reserves of 3.8 million tons of copper. 

TagsChina Molybdenum Co Ltd, Tenke Mine, BHR, Freeport McMoRan Inc.