AFRICA — Tenke looking to majors for Fungurume funding — Government terminates bid for Kolwezi tailings

Tenke Mining (TNK-T) has opened a library in London, England, to showcase information pertaining to its Tenke Fungurume copper deposit in Africa.

The library, or data room, is open only to major companies considering a partnership with Tenke at the project. Participants will have access to geological information, mine plans and legal documents concerning the mining concessions, situated in the Democratic Republic of Congo. The information available will also include the feasibility study, once it is completed in late March or early April.

“Participation by a major mining company is one of a number of alternatives that we are evaluating prior to finalizing our funding strategy,” says Phil Wright, president of Tenke Mining. “We expect to be in a position to make a judgment in relation to finalizing our funding strategy by June of this year.” The company has appointed the Union Bank of Switzerland assist in that “funding strategy.” The appointment does not affect the mandate given to the Investec Bank of South Africa to raise US$170 million on behalf of Tenke.

The Tenke Fungurume deposit is estimated to contain 18.4 million tonnes of copper and 898,000 tonnes of cobalt (T.N.M., Nov. 10/97)

Vancouver-based Tenke is operator, and holds a 55% interest in the project.

The remaining interest is held by the state-owned mining company.

Recent press reports have suggested that Tenke’s agreement to develop the project is being reviewed by the government. The company insists this is not the case, however it did confirm that Gecamines has indicated a desire to review, at a future stage, “the scale of production capable of being supported by the concessions given the resource estimates following exploration success.” Tenke also notes that its agreement was ratified by the present government in 1997.

In other news, the government recently terminated America Mineral Fields’ (AMZ-T) tender to develop the Kolwezi tailings in Katanga province (T.N.M.

Jan 12-18/98). The company, in turn, filed suit against Anglo American, alleging that the South African mining house “tortiously interfered with the company’s agreements in the Democratic Republic of Congo.”

Resources at Kolwezi have pegged at 107 million tonnes grading 1.34% copper and 0.26% cobalt from three locations.

Recent press reports suggest that the government is considering awarding the Kolwezi project to Belgium’s Union Miniere, its former partner from colonial times.