Lundin Mining Corp. (LUN), a Canadian diversified mining company with investments in Africa, slumped the most in more than 18 months after the Democratic Republic of Congo banned exports of copper and cobalt concentrates.
Lundin Mining fell 9.9 percent to C$3.73 at 1:08 p.m. in Toronto, after earlier falling 10 percent the most intraday since Sept. 22, 2011.
Congo took measures to block exports of the metals to force mining companies to add value to the commodities before shipping them outside the country, Mines Minster Martin Kabwelulu said today in a phone message.
Lundin Mining, based in Toronto, has a 24 percent stake in the Tenke Fungurume mining project in Congo, according to its website. Phoenix-based Freeport-McMoRan Copper & Gold Inc. (FCX) operates Tenke and owns 56 percent. The remainder belongs to Congo’s state-owned mining company.
“We want companies to export mineral products with great added value,” Kabwelulu said. Producers of the commodities in Congo have 90 days to clear their inventories of concentrated minerals, he said.
Sophia Shane, a Vancouver-based spokeswoman for Lundin Mining, said the restrictions aren’t expected to affect Tenke’s copper shipments.
“Most of what we produce is pure, refined copper,” she said by telephone today. “We do not produce copper concentrate.”
Shane wasn’t aware of whether the new export rules would affect Tenke’s cobalt shipments.
Congo was the world’s eighth-largest producer of copper and the biggest producer of cobalt last year, according to the U.S. Geological Survey. Tenke, Congo’s biggest mining project, produced 11,669 metric tons of cobalt last year, according to data on Lundin Mining’s website.
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