Glencore may have to renegotiate for Mutanda copper-cobalt project in DRC

Glencore PLC may need to renegotiate with the Democratic Republic of Congo for its Mutanda copper-cobalt project, which the company plans to restart, Bloomberg News reported April 22.

This is due to increased scrutiny ordered by Congo President Felix Tshisekedi on extractive deals made under the administration of former President Joseph Kabila.

"When you see what happened in this sector during the previous regime, it was scandalous in terms of concessions given to foreign companies," Andre Wameso, the president's deputy chief of staff for economic issues, said in an interview, as quoted by the news wire.

Some permits of Mutanda are set to expire in May, and Tshisekedi cited the renewal process as a basis to create an ad-hoc commission to study the project's benefits for the country, according to Wameso.

Glencore has not yet received a notice on Mutanda in relation to the commission, a company spokesperson told Bloomberg News.

Glencore intends to resume operations at Mutanda, which was put under care and maintenance in 2019 after a dip in cobalt prices.

Mutanda is expected to produce about 11,000 tons of cobalt annually between 2022 and 2025. Over Mutanda's 20-year mine life, Glencore has estimated average production of about 76,000 tons of copper and 21,000 tons of cobalt.

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