The asset fire sale continues at Freeport-McMoRan Inc. (NYSE: FCX). The gold and copper mining company announced Monday morning that it has reached an agreement to sell its interest in copper and cobalt projects in the Democratic Republic of Congo for $2.65 billion in cash, with a potential addition of $120 million dependent on copper and cobalt prices in 2018 and 2019.

China Molybdenum is buying Freeport’s 70% stake in TF Holdings, a Bermuda-based firm that owns an 80% stake in Tenke Fungurume Mining, giving Freeport an effective 56% interest in Tenke. The Chinese firm also acquires exclusive negotiating rights with Freeport for the sale of the U.S.-based firm’s stake in a cobalt refinery in Finland for $100 million and an exploration project in Congo for $50 million.

Since the beginning of 2016, Freeport has sold more than $4 billion in assets. The first was a 13% stake in the Morenci mine in Arizona to Sumitomo for $1 billion in February. In early March the company sold its stake in a Serbian copper mine to Toronto-based Lundin Mining for about $263 million.

Monday’s announced sale is subject to Lundin’s 90-day right of first offer. Lundin already holds a 24% stake in Tenke Fungurume Mining.

The company does not expect a material gain or loss on the transaction and said it expects to use the net proceeds to repay debt. One of Freeport’s main goals for 2016 is to begin major repairs to its balance sheet.

The company’s long-term debt at the end of 2015 totaled nearly $20 billion, virtually all of which was the result of its ill-timed return to the oil and gas business. Freeport wants to shave $5 billion off that total this year. CEO Richard Adkerson said Monday morning:

We are committed to our immediate objective of reducing debt while retaining a large portfolio of high quality assets and resources and a leading position in the global copper industry.

Freeport stock traded up about 1.5% in Monday’s premarket session, at $11.96 in a 52-week range of $3.52 to $23.60.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.