UPDATE: Freeport: Still In Talks With Congo Government Over Tenke
January 26 2009 - 9:15AM
Dow Jones News
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
Click here to go to Dow Jones NewsPlus, a web front
page of today's most important business and market news, analysis
and commentary. You can use this link on the day this article is
published and the following day.