RE: one question for someone more
The Tenke Fungurume mining license and development plan was in fact signed and legally in force in I believe 2004.
The mining review was announced when FCX and LUN were halfway through construction and had already incurred expenses of around 800 Million.
Thus commited, the two companies decided to continue moving forward with the development despite the new political risks. They have now completed the mine and are at 88% production capacity.(LUN's investor relations rep, Sophia Shane, told me this).
Tenke Fungurume's mining agreement was negotiated in an honest and transparent manner and is compliant with the Congolese mining code. This is why FCX insists that any changes are simply an attempt by the state to grab a larger pecentage of the project for free.
The governemnt of the Congo didn't spend a single penny in development, own a free 16.5% stake, and will receive royalties as well. They also get a free road system, improvements to local communities and infrastructure, as well as improvements to the local power grid.
This is why FCX has stuck to their guns and it has dragged so long.
By the way, the total costs of the project's development are in the neighborhood of 1.6 Billion dollars.
We may have to give a little up, but the governement's demands were extremely unreasonable.
I dont remember the exact number off hand, but they were talking about a 50 or 60% ownership scenario. Given the fact that they invested nothing, this is pretty much extortion.
They are trying to take advantage of FCX's and LUN's position, and their fear that having invested so much time and money, they will lose everything.
I don't think that they will do that, and many others feel the same way. I have even hear suggested that a nationalization Tenke Fungurume would have deep implications with regards to US - DRC international relations.
It certainly would have a very bad deterrent effect on other companies that would be willing to invest in the Congo, investment capital that the DRC needs.