China's CMOC agrees to pay Congo's Gecamines $800m to end spat
China's CMOC Group has reached an agreement with Congo State mining firm Gécamines and will pay $800-million to end a dispute over its Tenke Fungurume Mining (TFM) operation in the country, it said on Tuesday.
CMOC said in a statement it will start paying the settlement fee this year and complete payment by 2028.
The Chinese mining company also said TFM will distribute at least $1.2-billion in accumulated shareholder dividends to Gécamines.
"CMOC will further consolidate partnerships with Gécamines and expand co-operation in the new energy and other sectors," it said.
The firm is "committed to economic development and people's welfare in Congo and making a greater contribution to co-operation between China and Congo," it said.
Gécamines did not immediately respond to Reuters' request for comment.
The announcement comes after CMOC told Reuters last week it had resumed exports of copper and cobalt from its TFM mine that had been blocked by authorities in the country following the dispute.
Copper and cobalt shipments were halted in July 2022 after a row erupted when Gecamines said it suspected that CMOC understated TFM's reserve levels to reduce the amount of royalties it pays to the state miner.
CMOC, which owns 80% of TFM while the governments holds the remainder, denied the allegations.
CMOC produced 254,286 metric tons of copper and 20,286 metric tons of cobalt from the TFM operations in Congo last year.
The settlement with Gecamines will help TFM mines to expand its copper and cobalt capacity, CMOC said.
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