Tenke declares force majeure in DRC

The war in the Democratic Republic of Congo has forced Tenke Mining (TNK-T) to suspend payments on the the huge Tenke-Fungurume copper project in Katanga province.

To maintain its 55% interest in the project, Tenke must pay US$250 million to state-owned Gecamines (Generale des Carrieres et des Mines) by 2003. Of this total, US$50 million has been paid, and another US$50 million is due within four months of completing a feasibility study.

The company says it has been prevented from completing a feasibility study and has no alternative but to declare a force majeure, though it remains dedicated to bringing the project to fruition.

Tenke stresses that a recent option agreement with Broken Hill Proprietary (BHP-N) (T.N.M., Dec. 21-27/98) is unaffected by its decision.

Tenke-Fungurume is estimated to contain more than 500 million tonnes grading 3.5% copper and 0.27% cobalt, with significant exploration potential.

In early February, Tenke completed a private placement of 1.5 million shares at 25 cents per share.