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The recently commissioned Tenke Fungurume copper-cobalt mine in Congo is expected to see sales of around 100 million pounds this year, but a mining license review hasn't yet been completed, U.S. producer Freeport McMoRan Copper & Gold Inc. (FCX) said Tuesday.

A contract review for the mine, which produced its first copper in March,began in 2007 and has dragged on ever since. A total 61 mining companies have been reviewed in the license renegotiation process.

"Freeport believes its contract is fair and equitable, complies with Congolese law and is enforceable without modifications," the company noted. "The review process has not affected the development schedule or current operations," Freeport added.

Proposals for projects from several companies, including Freeport, have been rejected because they didn't meet the required terms of reference, according to Congo's deputy minister of mines Victor Kasongo. These terms include how the management of the projects are shared between miner and government, as well as environmental and community issues. The review is still ongoing, he said.

Freeport said it is making significant investments in infrastructure in the region, including upgrading a national road and the regional power generation and transmission systems, and that it has a number of social and community development programs.

The mine, located in the mineral-rich Katanga province, is a joint venture between Freeport, Lundin Mining Corp. (LUN.T) and the government of Congo, through state-owned miner Gecamines. Freeport has the majority stake and is the project operator.

The cobalt plant is currently being commissioned, and start-up issues are being addressed in the copper and cobalt circuits.

Freeport expects to ramp up to full annual capacity of 250 million pounds of copper and 18 million pounds of cobalt in the second half of the year.

Tenke produced 36 million pounds of copper, of which it sold 26 million pounds, in the second quarter.

-By Andrea Hotter, Dow Jones Newswires; +44 (0)20 7842 9413; andrea.hotter@dowjones.com