CORRECTED – FACTBOX-Changes to Freeport’s Tenke contract in Congo

(Corrects spelling of Freeport-McMoRan, Lundin throughout)

KINSHASA, Oct 22 (BestGrowthStock) – Freeport-McMoRan Copper & Gold
Inc (FCX.N: ) and the government of Democratic Republic of Congo
have concluded protracted re-negotiations over the Tenke
Fungurume copper and cobalt mining project.

For the main story please click [ID:nLDE69L0UV]

Here are the main changes to the contract, announced by
Martin Kabwelulu, Congo’s minister of mines, on Friday:

— The deal will be classified as a convention and remove
all mention of the mining code, which the ministry said had
previously characterised the contract as “hybrid” and was one of
two main sticking points that held up negotiations.

— State mining firm Gecamines’ stake in the project, which
is known as Tenke Fugurume Mining, rises to 20 percent from 17.5

— Freeport-McMoRan retains a 56 percent stake, down from
57.75 percent, and partner Lundin Mining (LUN.TO: ) retains a 24
percent stake, down from 24.75 percent.

— Gecamines to receive an additional payment of $30 million
according to an agreed schedule.

— A supplementary payment of $1.2 million from Tenke for
every 100,000 tonnes of proven copper discovered over and above
the current estimate of 2.5 million tonnes.

— A $20 million downpayment from Tenke, of which $10
million was paid this month and the rest will be paid in October

— A capital injection by Tenke of $50 million, taking the
capital to $65.05 million from $15.05 million.

— A hike of the interest repayment rate from LIBOR +2 to
LIBOR +6 for all Tenke’s financing, which will play in Tenke’s

— Greater participation in the project for Gecamines
officials in senior management, including as deputy managing
director, as well as signing a consultancy contract with
Gecamines for various services and supplies.

— A $5.08 million surface area payment covering the period
2005-2010. Kabwelulu said the changes would deliver $36.55
million in first-stage payments and $35 million plus
supplementary fees in future.

(Reporting by Katrina Manson; editing by David Lewis and
Michael Shields)

CORRECTED – FACTBOX-Changes to Freeport’s Tenke contract in Congo