DOW JONES NEWSWIRES 
 

The Congolese government is aiming to retain at least 35% in all future mining projects in order to improve national participation and benefit more from its natural resources, a government official told Dow Jones Newswires on Saturday.

An official with the state-run mining-licensing body, Cadstre Minier, said that Congo's Ministry of Mines has drawn up guidelines that will serve as a model for all future contracts, involving the country's state-owned mining companies and private companies.

"The guidelines are only waiting government's approval," the official said by telephone from Kinshasa, the Congolese capital.

According to the official, the guidelines also stipulate that private mining companies must pay at least 2.5% royalties on minerals produced to state mining companies and pay signature bonuses equivalent to 1% of the value of mineral projects. Private mining companies operating in the country also must adhere to the requirements of Extractive Industries Transparency Initiative.

The model is expected to be approved before the end of the year.

Since the late 1990s, Congo's state-owned copper/cobalt mining company, Gecamines, has been privatizing most of its mining projects to international mining companies and holds only minority stakes in most mines in the country.

The Congolese government is embroiled in a contract row with U.S.-based Freeport McMoRan Copper & Gold Inc. (FCX) over the Tenke Fungurume Copper/Cobalt mine. Freeport has opposed Congo's attempted to increase the stake of Gecamines, which holds 17.5% of the project. The row has dragged on since 2007. Tenke Fungurume is believed to host the largest unexploited copper and cobalt reverse in the world, according to analysts.

Other state mining companies in Congo include gold mining company Okimo and diamond-mining company Bakwanga Mining, or Miba.

Congo is Africa's largest tin and cobalt producer and the continent's second-leading copper producer after Zambia. The African Copperbelt, which stretches from Congo's Katanga province through northern Zambia, is believed to hold at least 10% of the global copper reserves.

-By Nicholas Bariyo, contributing to Dow Jones Newswires; 256-75-2624615 bariyonic@yahoo.co.uk

 
 
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