DRC No Longer Objects to Ivanhoe Mines' Copper Deal With Zijin Mining

Reuters reported that the Democratic Republic of Congo (DRC) government has issued a statement in support of a deal that would see Ivanhoe Mines (TSX:IVN) sell a sizeable stake in its Kamoa copper project to China’s Zijin Mining. Previously, the government had stated that the sale should be suspended.
As quoted in the publication:

The sale is a pre-requisite for the development of Kamoa, which is thought to be the world’s largest untouched high-grade copper discovery. A feasibility study on the Kamoa project is expected at the end of next year.

In a statement, mines minister Martin Kabwelulu and portfolio minister Louise Munga Mesozi added that Ivanhoe had agreed to sell an additional 15-per-cent stake in the mine to the government, which currently controls 5 per cent.

The government said in June that Vancouver-based Ivanhoe’s sale in May of a nearly 50-per-cent stake in the copper project in southeastern Congo to Zijin for $412-million should be suspended until concerns over the purchase of its own stake were addressed.

It was not exactly clear what the government’s objections were, although industry sources said they wanted guarantees on their own stake first.

Click here for the full press release.