By Carlo Martuscelli

Rio Tinto PLC (RIO.LN) said Friday that it will sell its interest in the Grasberg mine to PT Indonesia Asahan Aluminium, or Inalum, for $3.5 billion.

The miner said that if all conditions for the deal are met it expects the transaction to close in the first half of 2019. Rio Tinto's sale is dependent on a separate deal that mine-owner Freeport-McMoRan Inc. (FCX) made with Inalum going through.

Rio Tinto said it will use the proceeds of the sale for general corporate purposes. It currently holds rights to 40% of the Indonesian mine's production above a certain level.

Grasberg is currently owned by Freeport-McMoRan, which holds a 90.64% interest in the mine, with the remainder held by the government of Indonesia.

Write to Carlo Martuscelli at carlo.martuscelli@dowjones.com

(END) Dow Jones Newswires

September 28, 2018 06:46 ET (10:46 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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