Tenke Fungurume Mine
|Country||Democratic Republic of the Congo|
Tenke Fungurume Mining SA (TFM) is one of the largest copper and cobalt producers in the Democratic Republic of Congo (DRC). Construction on the site began in the latter part of 2006, and in 2009, TFM produced its first copper. The mine has since become a vital source of income for local communities and the country by way of royalties and taxes, as well as the largest employer in the region.
As of 2018, Tenke Fungurume Mining has paid over $2.5 billion (USD) in payments to the public treasury and other administrative services since project inception in 2006, and currently employs over 8,000 Congolese citizens as either employees or contractors on a full-time basis.
TFM operations are located in Fungurume, within the province of Lualaba, approximately 180 km northwest of the city of Lubumbashi. The mining concession area is approximately 1,600 square kilometers.
Tenke Fungurume Mining SARL was first owned by Phelps Dodge: 57.75%; Tenke Mining Corp.: 24.75%; Gécamines: 17.5%.
Freeport-McMoRan Copper & Gold Inc. and Phelps Dodge Corp. merged on March 19, 2007. Freeport-McMoRan Copper & Gold Inc., which operated the mine and held 56 percent of the shares, and became the world's largest publicly-traded copper company; Lundin Mining (24 percent); and, the state-owned Gécamines (20 percent).
In 2016, Freeport-McMoRan completed the indirect sale of its 70 percent interest in TF Holdings Limited to China Molybdenum Co. and an effective 56 percent interest in Tenke Fungurume Mining. In addition, Lundin announced an agreement to sell its interest in TFM to an affiliate of BHR Partners.
In 2017, BHR Newwood DRC Holdings was set up by private equity firm BHR to acquire a 24% interest in Tenke from Canadian miner Lundin for $1.14bn. In 2019, the acquisition of the holding company allowed China Molybdenum Co, which was already the majority owner of Tenke Fungurume, to have an 80% stake in Tenke Fungurume Mining.
Tenke Fungurume Fungurume SA is a leading copper and cobalt producer, with mines and processing facilities situated within the African copper belt in the Democratic Republic of the Congo. Tenke's substantial mineral endowment supports a long mine life and future expansion opportunities.
Tenke Fungurume Fungurume SA is also home to one of the world's largest known copper and cobalt deposits, and is the largest copper producer in the DRC.
Through the safe production of copper cathode and cobalt hydroxide, TFM provides metals crucial to the transportation, communications, construction, computers, medical science and many emerging technologies. TFM produced its first copper cathode in 2009.
China Molybdenum stated in 2019 that the fall in cobalt prices and rising costs made the mine unprofitable.
TFM community development strategy includes the following aspects:
- · Alignment of TFM programs with local, provincial and national development priorities
- · Addressing basic community needs and infrastructure such as potable water, access to health care, basic education and economic development
- · Creating employment opportunities and income generation for non-TFM employees through skills training, micro-credit facilities and agriculture extension support
- · Building capacity among the local community in partnership with government and local NGOs for long-term ownership and sustainability
- "China Molybdenum Says Giant Congo Copper Mine Is Losing Money". www.bloomberg.com. 2019-08-21.
falling metal prices combined with higher taxes and royalties, and rising costs meant it was now in a “deficit zone.”