TORONTO, Dec 7 (Reuters) - The Democratic Republic ofCongo's review of the Tenke Fungurume copper-cobalt minecontract may disrupt Tenke's development timetable if it is notcomplete by the end of the first quarter of next year, minorityowner Lundin Mining (LUN.TO) said on Monday.
Tenke, which is majority-owned and operated by U.S. minerFreeport-McMoRan Copper & Gold (FCX.N), began mining metal inMarch and has continued to operate even though it is one of 61mining projects whose contract has been looked at by thegovernment with a view to renegotiation.
The DRC launched the industry-wide review in 2007 and Tenkeis one of the last remaining contracts to be finalized. NeitherFreeport nor Lundin have offered an opinion on the outcome ofthe review or when it will be finished.
Freeport and Lundin were given until Oct. 12 to completenegotiations with the government or risk losing their miningpermit. That deadline has passed with no resolution.
Speaking at a mining conference in Toronto, Lundin ChiefExecutive Phil Wright said the review should not have anyimpact on the progress of the mine until the end of the firstquarter, when Freeport will have to make a decision on goingahead with the next phase of construction.
The current operations are designed to produce 250 millionpounds of copper and 18 million pounds of cobalt a year, butthe mine is seen eventually producing up to 1 billion pounds ofcopper annually.
"If the contract review is not completed by end of (thefirst quarter) it will sit on a critical path," Wright said.
"At that point Freeport will have to ask, do you investmore money?"
The contract review has been part of an effort to boost DRCstate revenues by renegotiating agreements signed mostly duringthe chaos and corruption of a 1998-2003 war and thetransitional government that followed.
Wright said that the current Tenke contract is already onterms favorable to the government. Freeport was not immediatelyavailable for comment.