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Released April 25, 2023 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Chinese mining giant China Molybdenum Company Limited (CMOC) (Beijing, China) has announced a breakthrough in its attempts to move a massive stockpile of copper and cobalt worth up to US$1.5 billion from its main mine in the Democratic Republic of Congo (DRC).
The company, which has been engaged in a bitter row over royalties with state-owned mining company Gecamines SA (Lubumbashi, DRC), has said that the two sides have reached an agreement that will allow the stockpile of metals to be exported from the Tenke Fungurume Mine (TFM), one of the world's biggest mines. CMOC owns an 80% stake in the Tenke mine while Gécamines controls the remaining 20% interest.
CMOC stated: "The Company and Gécamines reached a consensus on the issue of TFM royalties. This is the result of candid communication and friendly consultations between the two parties, and a "win-win" after taking into consideration the short-term interests and long-term development of the relationship between both parties based on the history of the project. The Company and Gécamines will further strengthen the joint venture partnership, and jointly expand cooperation in industries including the new energy industry, committing to promoting the economic development and the well-being of the DRC, and making greater contributions to the friendly cooperation between China and the DRC."
In March, Industrial Info reported that the ongoing row had led to about 120,000 tons of copper and 12,500 tons of cobalt being stockpiled, awaiting export, while every day roughly 500 tons of copper and 50 tons of cobalt were added to the mountain. For additional information, see March 3, 2023, article-Congo Hoards $1.5 Billion Mountain of Copper and Cobalt.
The row began in late 2021 when the government formed a commission to reassess the reserves and output from the Tenke mine, alleging that CMOC had under-reported them to reduce the royalties it pays to the government. A court action by Gecamines was seeking US$7.6 billion in unpaid royalties and interest. The government had appointed a temporary administrator to the mine but CMOC refused entry. Since then Congo's Prime Minister and other high level officials have tried to break the deadlock. For additional information, see July 26, 2022, article - China's CMOC Halts Copper-Cobalt Exports from Congo Mine.
The Tenke Fungurume Mine covers an area of more than 1,500 square kilometers, and in 2021 it produced 209,120 tonnes of copper and 18,501 tonnes of cobalt--around 7% of the world's copper and 15% of its cobalt. The dispute has impacted planned projects at TFM, including a proposed US$2.5 billion investment to double production of cobalt and copper at the mine. This would expand the mine's average annual copper output by 200,000 million tonnes per year (Mtp/y) and cobalt output by 17,000 Mtp/y.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The company, which has been engaged in a bitter row over royalties with state-owned mining company Gecamines SA (Lubumbashi, DRC), has said that the two sides have reached an agreement that will allow the stockpile of metals to be exported from the Tenke Fungurume Mine (TFM), one of the world's biggest mines. CMOC owns an 80% stake in the Tenke mine while Gécamines controls the remaining 20% interest.
CMOC stated: "The Company and Gécamines reached a consensus on the issue of TFM royalties. This is the result of candid communication and friendly consultations between the two parties, and a "win-win" after taking into consideration the short-term interests and long-term development of the relationship between both parties based on the history of the project. The Company and Gécamines will further strengthen the joint venture partnership, and jointly expand cooperation in industries including the new energy industry, committing to promoting the economic development and the well-being of the DRC, and making greater contributions to the friendly cooperation between China and the DRC."
In March, Industrial Info reported that the ongoing row had led to about 120,000 tons of copper and 12,500 tons of cobalt being stockpiled, awaiting export, while every day roughly 500 tons of copper and 50 tons of cobalt were added to the mountain. For additional information, see March 3, 2023, article-Congo Hoards $1.5 Billion Mountain of Copper and Cobalt.
The row began in late 2021 when the government formed a commission to reassess the reserves and output from the Tenke mine, alleging that CMOC had under-reported them to reduce the royalties it pays to the government. A court action by Gecamines was seeking US$7.6 billion in unpaid royalties and interest. The government had appointed a temporary administrator to the mine but CMOC refused entry. Since then Congo's Prime Minister and other high level officials have tried to break the deadlock. For additional information, see July 26, 2022, article - China's CMOC Halts Copper-Cobalt Exports from Congo Mine.
The Tenke Fungurume Mine covers an area of more than 1,500 square kilometers, and in 2021 it produced 209,120 tonnes of copper and 18,501 tonnes of cobalt--around 7% of the world's copper and 15% of its cobalt. The dispute has impacted planned projects at TFM, including a proposed US$2.5 billion investment to double production of cobalt and copper at the mine. This would expand the mine's average annual copper output by 200,000 million tonnes per year (Mtp/y) and cobalt output by 17,000 Mtp/y.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
