Copper and gold miner Freeport-McMoRan Inc. (NYSE: FCX) announced Monday morning that it had agreed to sell a 13% ownership stake in its Morenci mine for $1 billion to its joint-venture partner in the Arizona mine, Japan-based Sumitomo. The transaction is expected to close in mid-2016. subject to regulatory approval and other customary closing conditions.

Freeport expects to use the proceeds to repay borrowings under its bank term loan and its revolving credit facility. The company also expects to record a gain of $550 million on the transaction and to use losses to offset cash taxes on the sale.

When Freeport reported fourth-quarter results in late January, the losses were smaller than expected and shares jumped 8%. The stock popped again in early February as copper and gold prices rose. But the gain was more likely due to a falling dollar than a long-term increase in commodity prices, and share prices slipped again until last Friday when they got a boost on the news that David Tepper’s Appaloosa hedge fund had acquired about 3.5 million shares of Freeport stock.

The sale to Sumitomo may be the first step to make good on Freeport CEO Richard Adkerson’s promise when the company reported results:

As we enter 2016, our clear and immediate objective is to restore FCX’s balance sheet and position the Company appropriately to enhance shareholder value in the current market environment. We are responding swiftly and decisively to achieve this objective. Our high-quality asset base provides opportunities for significant debt reduction while retaining a substantial business with attractive low-cost, long-lived reserves and resources that will enable our shareholders to benefit from improved conditions in the future.

After the transaction announced Monday closes, Freeport will own 72% of the Morenci joint venture and the remaining 28% will be owned by subsidiaries of Sumitomo. Before the transaction, Freeport owned 85% of the joint venture.

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