Construction engineering company Norinco (SHE:000065) proposed to increase the Democratic Republic of the Congo government's stake in Chemaf's copper and cobalt mines to 15% at no extra cost, aiming to resolve a $1.4-billion deal standoff, Reuters reported Friday, citing two sources familiar with the matter.
The deal, initially challenged by Congo's state miner Gecamines and US opposition to China's dominance in the African Copperbelt, includes settling $900 million in debts and investing $500 million to expand the mines, according to the report.
Norinco seeks majority control while offering the DRC a share of metal production, mirroring a Gecamines-CMOC (SHA:603993, HKG:3993) agreement, Reuters wrote. The proposal, submitted in January, remains under discussion.
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