Chinese miner CMOC Group has agreed to make a settlement payment of $800m between 2023 and 2028 to Congo’s state-controlled mining company Gécamines to end a dispute related to the Tenke Fungurume copper and cobalt mine in the Democratic Republic of Congo (DRC).
Furthermore, CMOC will also pay at least $1.2bn (8.66bn yuan) in dividends to settle the dispute over royalties at the Tenke Fungurume Mining (TFM) operation.
Effective as of this year, the dividends will be paid to Gecamines over the project’s operational life.
The disagreement between the two companies over TFM started in July 2022, when Gécamines issued an order to halt exports from the mining site.
Gécamines claimed that CMOC owed $7.6bn in royalties and interest.
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Furthermore, the companies have agreed on several consensuses for future additional reserves and the future operation and management of the mine.
CMOC said in a stock exchange filing: “Gécamines will be entitled to 20% of the total value of the project’s subcontracting and the right to acquire a volume of production proportional to its 20% stake in TFM on market terms and in compliance with Congolese laws.
“CMOC and Gécamines will further strengthen the joint venture partnership, and jointly expand cooperation in areas including the new energy industry, committing to promoting the economic development and people’s well-being of the DRC, and making greater contributions to the friendly cooperation between China and the DRC.”
The Chinese company owns an 80% stake in the Tenke mine while Gécamines holds the remaining 20% interest.