Congo’s finance minister stated late Monday that the country’s state miner and China’s CMOC had reached an agreement on royalties, paving the door for mineral shipments from the world’s second-largest cobalt mine to resume.
TFM suspended copper and cobalt shipments after disagreements between Tenke Fungurume Mining (TFM) shareholders Gecamines and CMOC erupted in July.
An interim administrator appointed by a Congolese court ordered CMOC, the main owner, to suspend marketing and exports.
The CMOC and Gecamines have reached an agreement. In response to a Reuters query, Nicolas Kazadi replied, “I have some elements of this agreement, but I prefer to let the entities themselves confirm, and this will be done in the next few days.”
According to a statement made on Wednesday by China’s CMOC Group, a “consensus” on TFM royalties was reached on April 18. A “win-win” situation was described, but no details were supplied.
An alleged adviser to the Democratic Republic of the Congo President Felix Tshisekedi said that the talks should result in “around $2 to 3 billion” for the country.
Tshisekedi will fly to China in the near future to “seal the renewal of Chinese contracts,” he stated.
According to a top official at Gecamines, Congo has lost “more than $7 billion” in revenue as a result of the contracts’ earlier restrictions since the mining activity started. While denying it, CMOC threatened the country with legal action.
