CMOC to resolve dispute over Tenke Fungurume Mine
Chinese miner CMOC Group has agreed to settle disputes over the Tenke Fungurume copper and cobalt mine in the Democratic Republic of Congo.
The firm announced it will make a settlement payment of $800 million between 2023 and 2028 to Congo’s state-controlled mining company Gécamines to resolve the dispute and additionally will pay at least $1.2 billion (8.66 billion yuan) in dividends to settle the dispute over royalties at the Tenke Fungurume Mining (TFM) operation. These dividends will be paid to Gecamines over the project’s operational life, starting from this year.
Tenke dispute
The dispute between CMOC and Gécamines began in July 2022 when Gécamines ordered the halt of exports from the Tenke Fungurume mining site, claiming that CMOC owed $7.6 billion in royalties and interest. This settlement follows a provisional resolution made between the two companies in April 2023 to address the royalties dispute. As part of the agreement, they have also reached consensus on future additional reserves and the future operation and management of the Tenke Fungurume mine.
Currently, CMOC owns an 80% stake in the Tenke mine, while Gécamines holds the remaining 20% interest. The companies have further agreed to strengthen their joint venture partnership and expand cooperation in various areas, including the new energy industry, to promote economic development and people’s well-being in the DRC and contribute to friendly cooperation between China and the DRC.
