Freeport McMoRan Copper & Gold (FCX) has finally been given the thumbs up by the government of Congo following a review of its mining operation license that has lasted several years and resulted in a number of concessions to the state.

The U.S. copper producer, the second largest in the world after Chile's Codelco, can now breathe easy, now that its investments in Congo are in good standing.

"This important milestone provides the basis for future cooperation and enables Tenke to pursue additional investments to develop this massive project to its full potential," said Freeport's chief executive Richard Adkerson.

Just ten days ago, Adkerson told Dow Jones Newswires in an interview in London that he was optimistic a resolution was very close.

The government has upped its stake in the mineral-rich Tenke Fungurume copper and cobalt mine to 20% from 17.5% previously, will pay an additional royalty of $1.2 million for each 100,000 metric tons of proven and probable copper reserves above 2.5 million metric tons, and will make additional payments totaling $30 million in six installments upon reaching certain production milestones.

Freeport has also agreed to convert $50 million in intercompany loans to equity and pay $5 million for surface area fees.

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