Lundin mulls interest from multiple parties on Tenke copper mine

By Susan Taylor
TORONTO, June 9 (Reuters) - Lundin Mining Corp LUN.TO is
weighing interest from "multiple parties" for its stake in the
Tenke Fungurume copper mine in the Democratic Republic of Congo,
Chief Executive Paul Conibear said on Thursday.
In June, Tenke mine operator Freeport-McMorRan Inc FCX.N
agreed to sell its majority stake to China Molybdenum
603993.SS for $2.65 billion to help cut its debt.
Lundin has a 24 percent stake in the mine and the right of
first offer on any sale. Last month it hired the Bank of
Montreal to help it consider its options. Freeport owns 56
percent of Tenke, one of the world's largest copper deposits.
Congo's state mining firm Gecamines owns a 20 percent stake.
Lundin could do nothing and allow the China Moly deal to
proceed, supplant the offer, or sell its stake.
"We've been pleased by the response on interest, on a number
of these scenarios. There are multiple parties interested,"
Conibear said in an interview at the company's office.
"We've been busy and BMO's been busy, very busy. It's
obviously not an easy process, the DRC (Democratic Republic of
Congo) is a more challenging environment and Tenke's a really
big operation. But we've had very credible interest."
Lundin has until Aug. 8 to decide.
"It's obviously our highest priority to evaluate these
things in a relatively short period of time and make some
decisions," Conibear said.
Mounting a bid, either independently or as part of a group,
is the most complex move, he said. There are variations of each
of its three options.
He would not comment on which is preferable or whether
Lundin's right of first offer can be transferred.
Separately, Conibear said Lundin would not get involved in
Nevsun Resources' NSU.TO planned takeover of Reservoir
Minerals RMC.V . Reservoir owns a copper-gold project in Serbia
under a joint venture with Freeport.
Nevsun said in late April that it would buy Reservoir for
$365 million, trumping an offer Lundin announced in March to buy
part of Freeport's stake for up to $262.5 million.