Location | |
---|---|
Province | Lualaba Province |
Country | Democratic Republic of the Congo |
Coordinates | 10°34′06″S26°11′44″E / 10.568411°S 26.195633°E |
Production | |
Production | Copper: 209,120 tons (2021) [1] Cobalt: 18,501 tons (2021) [1] |
History | |
Opened | 2009 |
Owner | |
Company | China Molybdenum (80%) Gécamines (20%) |
Website | en |
Tenke Fungurume Mining SA (TFM) is one of the largest copper and cobalt producers in the Democratic Republic of Congo (DRC). Construction on the site began in the latter part of 2006, and in 2009, TFM produced its first copper. The mine has since become a vital source of income for local communities and the country by way of royalties and taxes, as well as the largest employer in the region.
As of 2018, Tenke Fungurume Mining has paid over $2.5 billion (USD) in payments to the public treasury and other administrative services since project inception in 2006, and currently employs over 8,000 Congolese citizens as either employees or contractors on a full-time basis.
Tenke Fungurume Mining takes its name from the two neighbouring communities of Tenke and Fungurume.
TFM operations are located in Fungurume, within the province of Lualaba, approximately 180 km northwest of the city of Lubumbashi. The mining concession area is approximately 1,600 square kilometers.
Tenke Fungurume Mining SARL was initially drilled around 1900 by Union Miniere, then by state owned Gecamines, then an Anglo American joint venture in the 70s, then Adolph Lundin in the 90s, then Phelps Dodge of the U.S, with a 57.75% share and the Congolese companies Tenke Mining Corp. (24.75% share) and Gécamines (17.5% share).
Freeport-McMoRan Copper & Gold Inc. and Phelps Dodge Corp. merged on March 19, 2007. Freeport-McMoRan Copper & Gold Inc., which operated the mine and held 56 percent of the shares, and became the world's largest publicly traded copper company; Lundin Mining of Canada now held 24 percent; and the state-owned Gécamines 20 percent.
In 2008, an Environmental impact assessment was conducted, with a zero discharge tailings dam designed to prevent contamination. [2]
On May 9, 2016, Freeport-McMoRan announced its intention to sell its stake in the Tenke project to China Molybdenum Co. for $2.65 billion in cash, to help reduce its debt. [3] The minority stakeholder in TF Holdings Limited, Lundin Mining, had a 90-day right of first refusal, which it extended multiple times as it considered its options. [4] [5]
In November 2016, on the deadline for when Lundin's right of first offer was set to expire, Freeport-McMoRan completed the indirect sale of its 70 percent interest in TF Holdings Limited to China Molybdenum Co. for $2.65 billion, representing an effective 56 percent interest in Tenke Fungurume Mining. In addition, Lundin announced an agreement to sell its interest in TFM to an affiliate of BHR Partners, and waived its right to acquire Freeport-McMoRan's stake. [6] [7] In 2017, BHR Newwood DRC Holdings was set up by private equity firm BHR to acquire a 24% interest in Tenke from Canadian miner Lundin for $1.14 billion. 100% of the purchase funds were supplied by the Chinese state-backed companies. [8]
The deal was strongly supported by prime minister Matata Ponyo Mapon in 2016, who praised China Molybdenum as a "solid partner". [9] On the other hand, the deal was initially opposed by the state owned Gécamines, which filed a lawsuit in international courts to block both acquisitions, [10] but dropped its objections in January 2017 after reaching an agreement for $100 million in compensation and additional control over future sales of equity in the mine. [11] [12]
BHR sold its stake in the mine to China Molybdenum 2019 for $1.14 billion, at which time Hunter Biden owned 10% of BHR. [8] [13] This acquisition of the holding company meant that China Molybdenum Co, which was already the majority owner of Tenke Fungurume, then ended up with an 80% stake in Tenke Fungurume Mining.
Tenke Fungurume Mining SA is a large copper and cobalt producer, with mines and processing facilities situated within the African copper belt in the Democratic Republic of the Congo. Tenke's substantial mineral endowment supports a long mine life and future expansion opportunities.
Tenke Fungurume Mining SA is also home to one of the world's largest known copper and cobalt deposits, and is the largest copper producer in the DRC.
Through the production of copper cathode and cobalt hydroxide, TFM provides metals crucial to the transportation, communications, construction, computers, medical science and many emerging technologies. TFM produced its first copper cathode in 2009.
China Molybdenum stated in 2019 that the fall in cobalt prices and rising costs made the mine unprofitable. [14]
During the COVID-19 pandemic in early 2020, workers at the mine were ordered to remain onsite in order to isolate themselves from outside contact. After working for two months in isolation, workers went on strike on May 23, demanding an additional $100 per day and a $4,000 bonus. [15] Production resumed after a single day strike after China Molybdenum agreed to the $100 per day in extra pay and a $300 bonus. [16] [17]
In August 2021, China Molybdenum announced a US$2.51 billion investment in order to double production of cobalt and copper at the mine. [18] [19] Shortly after, the Congolese government announced a probe to assess whether China Molybdenum was accurately reporting the reserves present at the mine. [20] Due to the dispute, in February 2022, operations at the mine were handed over to Sage Ngoie Mbayo, an administrator from Gécamines for six months. [21] [22] Operations were handed back to China Molybdenum by April 2022, after both parties agreed to settle the matter by third party arbitration. [23] On June 1, a judge ordered that the previous decision to hand over of the mine to Ngoie be enforced, but China Molybdenum denies that control of the mine has actually changed hands. [24] At a June 16 meeting in Lubumbashi, Gécamines executives claimed China Molybdenum owed as much as $5 billion, and threatened to block exports from the mine, or even to revoke China Molybdenum's ownership of the mine. [25] The court-appointed administrator ordered exports to be suspended, with logistics companies given notice on July 16 that exports from the mine were suspended until at least July 24. [26] [27]
Residents of the nearby town of Tenke are known to trespass into the mine to collect cobalt, which increased after the mine's change in ownership. Unable to prevent this, China Molybdenum brought in the Congolese military to patrol the mine for several months. [28] [29] After one trespassing miner was shot, a riot broke out in his village, leading to a second death. Funeral costs from these incidents were covered by the mining company. Security at the mine is supplemented by the private security company Frontier Services Group associated with Erik Prince. [30]
Freeport-McMoRan Inc., often called Freeport, is an American mining company based in the Freeport-McMoRan Center, in Phoenix, Arizona. The company is the world's largest producer of molybdenum, is a major copper producer and operates the world's largest gold mine, the Grasberg mine in Papua, Indonesia.
La Générale des Carrières et des Mines (Gécamines) is a Congolese commodity trading and mining company headquartered in Lubumbashi, in the Katanga region of the Democratic Republic of Congo. It is a state-controlled corporation founded in 1966 and a successor to the Union Minière du Haut-Katanga. Gecamines is engaged in the exploration, research, exploitation and production of mineral deposits including copper and cobalt.
The mining industry of the Democratic Republic of the Congo produces copper, diamonds, tantalum, tin, gold, and more than 63% of global cobalt production. Minerals and petroleum are central to the DRC's economy, making up more than 95% of the value of its exports.
CMOC or CMOC Group Limited, previously known as China Molybdenum Company Limited, is the largest molybdenum producer in Mainland China and among the world's largest companies in the field. It is listed on the Hong Kong Stock Exchange and Shanghai Stock Exchange.
Lundin Mining Corporation is a Canadian company that owns and operates mines in Sweden, United States, Chile, Portugal and Brazil that produce base metals such as copper, zinc, and nickel. Headquartered in Toronto, the company was founded by Adolf Lundin and operated by Lukas Lundin. While it was incorporated to pursue an interest in a diamond mine in Brazil, the company re-structured and raised funds to develop the Storliden mine in Sweden. It purchased the Swedish Zinkgruvan Mine from Rio Tinto and then merged with Arcon International Resources for its Galmoy Mine in Ireland and Eurozinc for its Neves-Corvo mine in Portugal. The company subsequently purchased and operated the Eagle mine, Candelaria mine, and Chapada mine.
The People's Republic of China (PRC) and the Democratic Republic of the Congo (DRC) have maintained diplomatic relations since 1961 and contacts between the two regions stretch back to 1887 when representatives of the Congo Free State established contacts with the court of the Qing dynasty. The first treaty between the two powers was signed in 1898.
Katanga Mining Ltd was a mining company operating in the Democratic Republic of the Congo with its headquarters in Canada. Katanga Mining operated a major mine complex in the Congo's Katanga Province, producing refined copper and cobalt. It claimed to have the "potential of becoming Africa's largest copper producer and the world's largest cobalt producer."
Kinsevere is an open pit mine and Heavy Media Separation plant with an electric arc furnace formerly operated by Anvil Mining, and now operated by Minerals and Metals Group. It is located 30 kilometres (19 mi) north of Lubumbashi, Katanga Province, Democratic Republic of Congo.
Copper mining in the Democratic Republic of the Congo mainly takes place in the Copper Belt of the southern Katanga Province of the Democratic Republic of the Congo.
Mutoshi Mine is a copper mine in Katanga Province, Democratic Republic of the Congo. As of 2011 it was 70% owned by Anvil Mining and 30% by the state-owned Gécamines. The mine was placed on care and maintenance in late 2008.
The Dikuluwe Mine is a copper and cobalt mine near to Kolwezi in Lualaba Province of the Democratic Republic of the Congo. Dikuluwe is the westernmost of the Dima Pit group, with Mashamba West and Mashamba East. The quarry was opened in 1975 and was planned to be connected to the nearby Mashamba West pit. The combined Dikuluwe and Mashamba West deposits are now run by La Sino-Congolaise des Mines SA (Sicomines), a joint venture majority owned by a Chinese consortium, with Gécamines holding a minority stake.
Kalukundi Mine is a copper and cobalt mine being developed in Katanga Province, Democratic Republic of the Congo (DRC) by Africo Resources, a Canadian company. In September 2008 the company estimated the value of the resource as $1.47 billion.
The Central African Mining and Exploration Company plc (CAMEC) was a mining company active in the Katanga Province of the Democratic Republic of the Congo (DRC) and in other parts of Africa. It was acquired by Eurasian Natural Resources Corporation in 2009.
Dan Gertler is an Israeli billionaire businessman in natural resources and the founder and president of the DGI group of companies. He has diamond and copper mining interests in the Democratic Republic of the Congo (DRC), and has invested in iron ore, gold, cobalt, oil, agriculture, and banking. He may also hold citizenship of that country. As of 2022 his fortune was estimated at $1.2 billion by Forbes.
The Mutanda Mine is an open-pit copper and cobalt mine in the Lualaba Province of the Democratic Republic of the Congo (DRC). It is the largest cobalt mine in the world. Accidents and spills at the mine have killed workers and polluted nearby rivers and fields. An NGO that has documented impacts of the mine concluded that spills have threatened community members' right to food.
Camrose Resources Limited (Camrose) was a company owned by Dan Gertler, an Israeli businessman, the founder and President of the DGI Group of Companies. Camrose's other assets included a "64% stake in Canada listed Africo Resources which held a 75% interest in the Kalukundi Mine's exploitation licence as well as a 56% indirect interest in Comide Sprl, which held the exploitation licence for Mashitu, Pangalume and Kii tenements."
Harvest Fund Management is a Chinese asset management company that invests in financial services.
BHR Partners is a Chinese private equity firm. The company was renamed to BHR Partners (Shanghai) Equity Investment Fund Management Co., Ltd. on May 31, 2023. BHR Partners was founded in 2013 by Bohai Industrial Investment Fund Management Co., Ltd., which is controlled by Bank of China Limited whose focus is on mergers and acquisitions, investments, and reforms as part of the country's state-owned enterprises.
Albert Yuma Mulimbi is a Congolese businessman, economist and former chairman at the state-owned mining company Gecamines. An International Labour Organization dignitary, he is the chairman of the Congolese Employers Federation, Democratic Republic of the Congo's biggest business lobby group.
The Deziwa mine is a large open-pit copper and cobalt mine located about 35 km east of Kolwezi in Lualaba Province in the Democratic Republic of the Congo. The mine is estimated to hold 4.6 million tonnes of copper and 420,000 tonnes of cobalt. The mine sits directly adjacent to the Mutanda Mine.
the $1.14 billion BHR, through subsidiaries, paid to buy out Lundin came entirely from Chinese state-backed companies [...] By the time BHR sold its share in 2019, Mr. Biden controlled 10 percent of the firm
falling metal prices combined with higher taxes and royalties, and rising costs meant it was now in a "deficit zone."