The Chinese group CMOC continues to refute the accusations of underestimating TFM’s copper reserves

Chinese group CMOC has hit back at what it called “savage overcharging” by Congolese state-owned mining company Gécamines, which is seeking compensation for increased copper and cobalt reserves at its Tenke Fungurume mine in the country. .

Congo suspects CMOC of having underestimated the mine’s reserves to reduce the amount of royalties it pays to Gécamines, which owns 20% of Tenke Fungurume Mining (TFM). CMOC, formerly known as China Molybdenum, denies doing so.

The dispute between the two shareholders began in August 2021 when CMOC announced plans to invest $2.5 billion in the expansion of Tenke Fungurume, the world’s second largest cobalt mine. The expansion would roughly double the mine’s production.

“If we have to assess all the revenue lost, we are beyond $7 billion,” said Gécamines Deputy Director General Leon Mwine Kabiena. “We told them CMOC that if they didn’t have enough money to pay the full amount, they should look into how to compensate with shares and deposits. »

Mwine did not elaborate on how Gécamines arrived at the $7 billion figure. According to a 2010 agreement between Gécamines and TFM, TFM must pay Gécamines additional royalties of $1.2 million for each 100,000 tonnes of copper reserves above a reference level of 2, 5 million tons.

Gécamines is now asking CMOC for between $2 billion and $2.5 billion in cash and a larger 49% to 51% stake in TFM, an official familiar with the negotiations said, speaking on condition of anonymity because the talks are confidential.

Mwine declined to comment on the potential request for a stake increase.
“We trust and accept a fair assessment by an independent international third party if there were opposing views to the additional reservations, but we would not accept any unsubstantiated wild overload, manipulated by a few of GCM Read the story complete,” CMOC spokesman Vincent Zhou said in a written response to questions from Reuters.

The feasibility study for the expansion of TFM has been approved by the Congolese mines ministry, Zhou added.

The CMOC said in March that “significant progress” had been made in resolving the dispute, but in July TFM’s exports were suspended by order of a Congolese interim administrator, and the company told Reuters on Monday that could take legal action against Gécamines.

Source: mines.cd