government renegotiates the terms of his contract with the U.S. Freeport mine. The outcome promises to be happier for the Canadian First Quantum, which suspended operations in September.
Partira? Go away? The fate of Freeport in the Democratic Republic of Congo (DRC) is not yet sealed. The U.S. mining group had until Oct. 12 to meet the demand of the authorities, but the deadline has passed and negotiations continue.
main shareholder with 57.75% stake in Tenke Fungurume Mining (TFM), the joint venture created to implement a massive project to exploit the copper and cobalt on a grant of 1 600 km2, between the towns of Tenke and Fungurume, Katanga, southern DRC, Freeport is asked to make an effort for that a larger share of profits back to the DR Congo.
public company, Gecamines currently holds 17.5% stake in TFM. That is not enough, according to the State. The latter does not merely propose an increase in share of Gecamines. An alternative solution is currently being discussed: the repayment to the company public of a "production bonus" kind of "royalty" levied on the mineral product, which could reach 2.5% of the cost.
The state requirements are part of the "review of mining contracts." Launched in June 2007, this initiative is about sixty agreements between Gecamines and mining companies - including multinational corporations - at a time when the state, weakened by war, was unable to defend its interests . A situation in which some partners do not hesitate to take advantage. At the time of reconstruction, DR Congo has sought to redress the balance. The contract with Freeport is the last to be the "reinterpretation".
prime investor in the country
Like its competitors, the group is resisting. "This contract was negotiated and signed in transparency in 2005, defends Margaret Rashidi Kabamba, the communications director. In addition, the company, which employs 2,300 workers, advance have already made $ 2 billion investment in TFM and paid in two years, 140 million dollars in taxes. What is not negligible being discussed, the 2010 budget is $ 5.3 billion. Arguments that leave hard cash Margaret Rashidi Kabamba optimistic: "We are the largest investor in the country, we must reach a win-win. "
government side, it displays the same serenity "We should reach an agreement before the end of October, announced Mikandji Alexis, Chief of Staff of the Minister of Mines, Martin Kabwelulu. There is no need to worry. "
To hear the end of history will not be the same as the First Quantum. In February 2008, the government submitted a list of conditions for the Canadian group's plant project in Kolwezi (Katanga). But, considering that he had not met, the authorities finally required the company to return its operating license. Was in August. First Quantum's reaction was not long in coming mid-September, the group announced that work was suspended and he had referred the matter to an international arbitration tribunal.
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