Summary
Freeport-McMoRan Inc. (FCX) has filed an 8-K to provide investors with details regarding the Amended and Restated Mining Convention and Shareholders Agreement for the Tenke Fungurume copper and cobalt project in the Democratic Republic of Congo (DRC). These restated agreements, dated September 28, 2005, govern the operations of the project, in which FCX holds an effective 57.75% interest through its majority stake in TF Holdings Limited. The filing clarifies the ownership structure, board representation, funding responsibilities, and the fiscal and legal framework under which the project operates, including adherence to the 2002 DRC Mining Code and internationally accepted environmental standards.
Key Highlights
- 1FCX is filing restated agreements governing its significant Tenke Fungurume copper and cobalt project in the DRC, in which it holds an effective 57.75% interest.
- 2The project's shareholding is split between Gécamines (Class A, 17.5%, non-dilutable) and TF Holdings (Class B, 82.5%), with FCX operating the project.
- 3TF Holdings (FCX's subsidiary) is responsible for 100% of the project's investment, with funds earning interest at LIBOR plus 2%.
- 4The project is contractually bound to the fiscal regime of the 2002 DRC Mining Code and applicable DRC laws, stabilized as of the Mining Convention date.
- 5FCX is entitled to freely export all production and hold funds abroad in foreign currencies.
- 6A transfer bonus of $100 million is payable to Gécamines in stages, with $65 million already paid.
- 7FCX is working to resolve proposed modifications to the restated agreements sought by the DRC's Ministry of Mines, asserting the current agreements are valid and enforceable.