Production of copper at the Tenke Fungurume copper mine in Congo is expected to rise by 16% in 2011 from current levels, according to its majority owner Freeport McMoRan Copper & Gold Inc. (FCX).

This means annual production will increase from 250 million pounds to around 290 million pounds during 2011.

Freeport is currently enhancing the mine plan at Tenke--the subject of a dispute between the company and the Congo government--by buying equipment to enable additional high-grade material to be mined.

The milling facilities, which were designed to produce at a capacity rate of 8,000 metric tons of ore per day, have been performing above capacity in recent months. The company said it expects daily ore throughout to rise to 10,000 tons.

Freeport owns a 57.75% stake in the project, while Lundin Mining Corp (LUN.T) holds a 24.75% stake. The mine, located in the mineral-rich Katanga Province, has been fraught with problems since early 2009, when the Congo government said Freeport had failed to meet the requirements of its mining license review.

Talks between Freeport and the Congolese government still haven't resolved the dispute.

-By Andrea Hotter, Dow Jones Newswires; +44 (0)20 7842 9413; andrea.hotter@dowjones.com

 
 
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