Gecamines threatens to take partner's stake in cobalt mine – Bloomberg

Democratic Republic of Congo's state-owned Gécamines SA threatened to take the stake of partner China Molybdenum Co. Ltd. in the Tenke Fungurume copper and cobalt mine and may even block exports from the mine over an ongoing dispute, Bloomberg News reported June 17.

Gecamines, which owns 20% of the mine, claims that China Molybdenum owes as much as $5 billion in payments and that it has manipulated the mine's finances, the report said.

Gecamines CEO Bester-Hilaire Ntambwe Ngoy Kabongo and Deputy CEO Leon Mwine Kabiena said that they are ready to dissolve the partnership to revoke China Molybdenum's ownership.

"Tactical arrangements can also be made at road level so that no [Tenke Fungurume Mining] production can go out," Mwine said. "We have a lot of options on the table and if they continue with this game, things will get harder."

Court-appointed administrator Sage Ngoie Mbayo said he is now in charge of the bank accounts of the mine's holding company, Tenke Fungurume Mining SA. However, Congolese soldiers blocked Ngoie from entering the mine site last week.

Earlier this month, China Molybdenum denied that Ngoie had taken over Tenke Fungurume.

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