Rio Tinto (ASX:RIO) is set to sell its interest in the world’s second largest copper mine, Grasberg in Indonesia.
The proposed terms are for Rio to sell its entire interest in Grasberg to Indonesia’s state mining company, Inalum, for $3.5 billion.
Any final agreements will be subject to approval by the necessary government regulators and authorities.
The Grasberg mine in Indonesia is currently owned by FCX, who hold a 90.64 per cent interest, and the Government of Indonesia, who own the remaining 9.36 per cent.
Rio Tinto currently has a right to 40 per cent of production above a pre agreed level and 40 per cent of all production after 2022.
Shares in Rio (ASX:RIO) closed down 0.26 per cent to $79.95 yesterday.