Freeport-McMoRan close to agreement with DRC to expand Tenke Fungurume - CEO

The miner has already begun mining at the site but expansion of the second phase has been held up by a decision by the DRC government to review all mining contracts in the country

NEW YORK (Reuters)  - 

Freeport-McMoRan Copper & Gold (FCX.N) is close to agreement with the Democratic Congo government allowing it to go ahead and expand its huge copper/cobalt mine in the central African nation, its CEO said on Tuesday.

"The government has been realigned within the last month ... and there are positive indications that we are within sight of having a conclusion to this process," Richard Adkerson told the Reuters Global Mining and Steel Summit.

Freeport has begun mining metal at the Tenke Fungurume project, but expansion of the mine's second phase has been held up by the Kinshasa government's decision to review all mining contracts in the country.

The former Belgian colony has had a U.N. peacekeeping troop presence for over a decade, helping the government battle guerrillas.

Asked by Reuters about the status of the contract review, Adkerson said: "I am confident, (but) I will tell you there are risks associated with this investment. I am confident, or we wouldn't be doing it. But I wouldn't underestimate the risk of doing business in a country like the DRC.

"In the context of our total set of assets ... it's an appropriate allocation of resources to deal with the risk of being there in light of potential rewards that we have."

(Reporting by Steve James)

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