BHR Newwood, an affiliate of BHR Partners, a Chinese private equity firm, has acquired an indirect interest in TF Holdings from Lundin Mining Corporation for $1.136bn in cash.

TF Holdings is a Bermuda holding company that owns an 80% interest in Tenke Fungurume Mining located in the Democratic Republic of Congo.  

Lundin Mining held an indirect 30% interest in TF Holdings and therefore, an effective 24% interest in Tenke.  

BHR Newwood now joins CMOC and la Generale des Carrieres et des Mines, an affiliate of the DRC government, as shareholders of this asset.  

TFM is home to one of the world’s largest copper and cobalt deposits. 

BHR Newwood said it “looks forward to working alongside its partners in TFM and to continuing to service and manage this world-class asset, for the benefit of all shareholders and the people of the DRC”. 

Under the terms of the agreement previously announced on November 15, 2016, Lundin Mining Corporation could also receive contingent consideration of up to $51.4m, consisting of $25.7m if the average copper price exceeds $3.50 per pound and $25.7m if the average cobalt price exceeds $20.00 per pound, both during a 24-month period beginning on January 1, 2018.  

Concurrently with the completion of the sale, Lundin Mining paid approximately $14.2m to CMOC as reimbursement for payments made by CMOC in connection with a settlement agreement.

Paul Conifer, President and CEO of Lundin Mining Corporation, said: “The completion of the sale of our minority interest in Tenke will enable Lundin Mining to focus on its majority-owned operations and projects and in parallel, advance our strategy to grow the company while maintaining a strong balance sheet. Lundin Mining is proud to have been part of Tenke’s successful record.  We wish the shareholders of Tenke every success in the future.”