Davis Polk & Wardwell and Freshfields have advised global mining giants Freeport McMoRan Inc and Rio Tinto, respectively, on the $3.85 billion sale of a majority stake in the Grasberg mine to Indonesia’s state mining company, Inalum, which was represented by Ashurst.
Reuters said that the sale brings Freeport close to ending more than nine years of often fractious negotiations with Indonesia over ownership rights to Grasberg, the world’s second-biggest copper mine. The agreement gives the parties six months to close the deal and process several permits including those related to antitrust laws in China.
After the transfer Inalum will hold a 51.23 percent stake in PT Freeport Indonesia, which will then be issued with a special mining permit for Grasberg, ending its existing operating contract for the mine, Reuters added. Rio holds a 40 percent participating interest in the Grasberg mine, which will be converted to an equity stake that will be transferred to Inalum, as part of the transactions.
The Davis Polk team was led by partner Marc O. Williams, who was supported by partners Pritesh P. Shah, William A. Curran and Sartaj Gill. The Ashurst team was led by partners Simon Brown and Ipop Nawangsari.
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