From The Wall Street Journal:
Freeport-McMoRan Inc. on Monday said it reached a deal to sell part of its stake in an Arizona copper mine to one of the mine’s other owners, in an effort to pay down debt.
Phoenix-based Freeport, one of the world’s biggest copper miners, said it would sell a 13% ownership interest in its Morenci mine, located in the desert on the Arizona-New Mexico border, to Sumitomo Metal Mining Co. for $1 billion. The company said it would record a gain of $550 million on the deal, the difference between the sale price and the stake’s book value of $450 million.
Freeport Chief Executive Richard Adkerson said the transaction was part of the company’s plan to reduce what it owes to creditors “while retaining a portfolio of high-quality assets and resources.” Mr. Adkerson pledged last month to cut the company’s $20 billion debt by as much as $10 billion.
