Rio Grasberg exit official

PolarX points to upside

polarx ltd

"This agreement is a significant step towards the sale of our interest in Grasberg and provides further evidence of our commitment to strengthening the portfolio by selling non-core assets and driving higher returns across the business," Rio CEO J-S Jacques said.

"We will continue to shape the portfolio, maintain a strong balance sheet and allocate capital to the highest value opportunities in order to ensure that Rio Tinto continues to deliver sector leading returns to shareholders."

PolarX points to upside

polarx ltd

Grasberg is 90.64%-owned by Freeport-McMoRan, with the Indonesian government holding the balance.

Inalum separately reached agreement with Freeport that will see Freeport receive $350 million cash.

Inalum will hold 51.2% of Grasberg, with Freeport holding the balance.

"This step marks another significant milestone toward establishing a new long-term partnership with the Republic of Indonesia to provide long-term stability for PT Freeport Indonesia's operations," Freeport CEO Richard C Adkerson said.

"We look forward to a mutually positive and beneficial partnership with Inalum that will continue to provide substantial benefits to the people of Papua; the Republic of Indonesia; and to local employees, suppliers and contractors while generating attractive returns for our shareholders."

Grasberg produced 468,000 tonnes of copper in 2017 and is the second-largest copper mine in the world.