The Tenke Fungurume project is still the subject of talks between its owners and the Congo government, U.S. producer Freeport McMoRan Copper and Gold Inc. (FCX) said Monday.

A contract review for the project, slated to start producing copper in the second half of the year, has been continuing for many months.

Of the 61 mining companies in the license renegotiation process, just 14 have satisfied all the Congo government's criteria. The others are still in negotiations, with 26 companies renegotiating their licenses and 21 miners facing the complete loss of their licenses.

The rationale behind the review is to restore Congo's mining sector to its former glory. Congo holds an estimated 10-15% of the world's copper reserves, with exploration expected to increase this figure to between 20% and 25%.

Freeport is funding 70% of the Tenke development costs and is also responsible for financing its partner's share of certain project overruns. Around $1.4 billion in aggregate project costs have been incurred through Dec. 31, Freeport said.

Tenke is a joint venture between Freeport, Lundin Mining Corp. (LMC) and the government of Congo, through state-owned miner Gecamines.

-By Andrea Hotter, Dow Jones Newswires; +44 (0)20 7842 9413; andrea.hotter@dowjones.com

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