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Gold/Mining/Energy : Tenke Mining Corp (TNK) -- Ignore unavailable to you. Want to Upgrade?

To: Gunnar who wrote (179)	7/2/1998 3:20:00 PM
From: Greywolf	Respond to of 486

Tenke Mining is holding discussions with a number of major mining companies with respect to participation in the Tenke Fungurume copper/cobalt project in Katanga Province, Democratic Republic of Congo. A number of proposals are under discussion and the company expects at least one more. The company estimates it will take until August to refine the proposals, although it is possible it will be earlier. Parallel discussions regarding project debt funding are at an advanced stage with strong indications of a fully underwritten debt requirement on normal project finance terms. At a detailed project level, two specialist appointments have been made in support of the project implementation: CMPS&F, experienced mining engineering consultants based in Australia, has been appointed to provide engineering support services to the company's project team during the pre-commitment phase of the project. CMPS&F, a subsidiary of Groupe EGIS of France, is focusing on preliminary engineering for long lead items and assistance with technical bid evaluations; Enthalpy Pty Ltd. of Australia has been retained to provide specialist project management support and is concentrating on project mobilization activities including the bid, evaluation and finalization of EPC/M contracts. The company is receiving excellent support from its partner, Gecamines and from the government. The Tenke Fungurume copper/cobalt concessions are estimated to contain over 500 million tonnes of global resources grading 3.5 per cent copper and 0.27 per cent cobalt and significant further exploration potential exists. A draft feasibility study is nearing finalization. This is based on mining an initial 85 million tonnes of ore with an average extraction grade (acid soluble) of 3.19 per cent copper and 0.29 per cent cobalt to give copper production of 100,000 tonnes per year for the first four years and 200,000 tpa from years six through 15. Associated cobalt is approximately 6,000 tpa, rising to 13,000 tpa. Costs to construct the project are estimated to be approximately $475-million (U.S.). Operating cash costs for the first phase are estimated to be 6 cents (U.S.) per pound of copper assuming a cobalt by-product credit of $10 (U.S.) per pound. For the 15 year project as envisaged by the draft feasibility study, the equivalent average cash cost is minus 7 cents (U.S.) per pound. These costs should position the project near or at the bottom of the world copper production cost curve. A futher note is that emilbe wrote on the Dibb page dib.se in Sweden that Anglo American Corporation of South Africa has stated in their yearly report that they have an intention to invest in the Tenke Fungurume mines owned by Lundin. I seem to recall that this is one of the companies that there was speculation about when it became apparent that TNK was looking for joint venturers.

To: Gunnar who wrote (179)	7/5/1998 9:16:00 AM
From: Gunnar	Read Replies (1) \| Respond to of 486

The accurate figures concerning the payments to Gecamine: "The concession holder is a partially owned subsidiary of TMC with TMC holding a 55% controlling interest and Gecamines the remaining 45%. TMC is responsible for arranging all the financing and will receive 100% of cash flow until an amount equal to the financing and interest thereon is repaid. Thereafter, profits are split 55%/45% with Gecamines. An initial property payment of US$50 million has been paid to Gecamines. A further US$50 million is due four months after finalization of the final feasibility study and a final US$150 million in May 2003". Qouted from the press release 09 03 98. That is to say that the reporter on "Dagens Industri" was wrong:(1)not three month after...(2) not one year later (the 150) But the reporter has one important point in his article: The feasibility study is stated as "almost" ready by the company. The proved 60 million copper deposit at Etoile would be a nice bargain for SCQ (up to CAD 5 - 10?) - Boliden - and Tenke. The net dilution in two Lundin companies would be less. Anglo or some other company is of course welcome as well. I still prefer a creative solution encompassing several companies. This is a big project that needs special solutions: Will Gecamine remain at 45%? Regards, Gunnar