The Democratic Republic of Congo has added Mutanda, glencore's large copper and cobalt project that is in the process of being relaunched, to the list of projects that could face renegotiation.
The move to investigate Mutanda comes as DRC President Tshisekedi has stepped up scrutiny of mining deals struck under his predecessor Joseph Kabila.
Dr Congo is currently reviewing copper and cobalt projects controlled by foreign companies, and presidential advisers are reviewing licences and royalties for various raw materials controlled by Israeli billionaire Dan Gertler.
Andre Wameso, the president's deputy chief of staff for economic affairs, said in an interview on Thursday in Kinshasa, the capital: "When you look at what happened in this area under the previous administration, the concessions to foreign companies are shameful."
Some of Mutanda's licences are due to expire next month and Mr Tshisekedi has used the licence renewal process to set up a special committee to assess the project's benefits for Congo, Mr Wamso said.
Mutanda hasn't received any formal notification, a Glencore spokesman said by email Friday.
Glencore confirmed in December that it planned to reopen Mutanda. Mutanda went into maintenance in 2019 after cobalt prices collapsed. Glencore said the project would produce about 11,000 tonnes of cobalt a year between 2022 and 2025, with an expected average copper production of about 76,000 tonnes and cobalt production of about 21,000 tonnes over the 20-year life of the mine.
As the economy shifts to cleaner technologies that use electricity as an energy source, carmakers' demand for battery metals has recovered. Cobalt and copper are key metals in the green transition.
According to Congolese mining cadastre records, three of Mutanda's four licences are due to expire in May.
"This is an opportunity for us to look very calmly at how things are going and whether there is any improvement in rebalancing the partnership with Glencore," Mr Wamso said. We have nothing against Glencore."
Wamso said any rebalancing would be to ensure the country's "interests are preserved."
Congolese mining regulations stipulate that mining companies can only submit applications for renewal of licenses through the cadastral register and the Ministry of Mines. The regulation also requires companies to transfer 5% of their shares to the state upon renewal.
According to the regulations, the cadastral administrator sends the license renewal file to the Minister of Mines, who has 30 days to accept or reject it. If the Minister says nothing, the permit is taken to be accepted, assuming the cadastral officer has recommended that it be accepted. After this, renewal must be registered by the cadastre.
Mutanda is following the renewal process set out in Congo's mining regulations and is expected to register in the next few weeks, a Glencore spokesman said.
Mutanda produced one-fifth of the world's cobalt and nearly 200,000 tonnes of copper in 2018, its last year of full production.
According to Glencore's 2021 annual report, the company resumed processing oxide ore stocks late last year, while exploring for future mining of Mutanda's sulfide resources.
