JOHANNESBURG (miningweekly.com) – The Congolese subsidiary companies of JSE-listed diversified miner Metorex have concluded negotiations with the authorities in the Democratic Republic of Congo (DRC) regarding the country's title review process.

The DRC had reviewed and renegotiated 61 contracts entered into between State mining firms and foreign companies during a civil war in the country, which occurred between 1998 and 2003.

Metorex said in a statement to shareholders on Friday that its subsidiary companies had had been given final approval by the DRC government regarding the reviews of Ruashi Mining and Miniere de Musoshi et Kinsenda (MMK), after having concluded final agreements with La Generale des Carrieres et des Mines (Gécamines) and Societe des Developmente Industrial et Miniere du Congo (Sodimico) and.

"Metorex is satisfied with the outcome of this protracted negotiation process. We now look forward with certainty to the future for the Ruashi Mining project, which boasts a state of the art processing facility," Metorex MD Charles Needham stated.

Metorex's subsidiary would now pay a $4-million mineral content fee payment, in addition to an initial $3-million mineral content fee it had paid before the review was launched.

It would make an initial $2-million payment, which would be followed by a $1-million payment by the end of next year and a final $1-million payment in 2011.

Gécamines would also now hold a 25% stake in Ruashi Mining, compared with the 20% stake it held under the original agreement.

Further, the Congolese company would also receive a standard 2,5% in royalties on gross revenue on ore treated from stockpiles and open pits at Ruashi.

According to the original agreement, it would have received 2,5% in royalties from ore treated from the stockpiles, and 0,5% from ore treated from the open pits.

Metorex was focusing on ramping up production at Ruashi Mining during 2009, while it was also undertaking drilling and a prefeasibility study (PFS) at the Musonoi project, which formed part of he Ruashi Mining Concession.

The miner said it expected the PFS to be concluded within the next 12 months, with the development of the project expected to take place after the commissioning of the Kinsenda Mine.

"We are also seeking a suitable financing package for the continued development at Kinsenda mine," said Needham.

The miner planned to construct a copper concentrator at the operation in order to bring it into production, stated Metorex.

Meanwhile, the agreement between Sodimico, the Copper Resources Corporation (CRC) and Metorex, regarding MMK, included the additional payment of a $3-million mineral content fee to Sodimico over three years.

Further, Metorex and its joint-venture partner CRC would now own 77% of MMK, while Sodimico would hold a 23% stake. Royalties payable to Sodimico would also be standardised at 2,5% of gross revenue.

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