Reuters reported that Congo's government has sold its minority stake in two confiscated copper mining projects for USD 30 million and the state mining company involved has paid millions to fund upcoming elections.

The sale involves Congo's No 3 copper mine and was well below the estimated value of the assets. It is the latest in a series of controversial transactions that have dominated the mining industry, months before President Mr Joseph Kabila is due to face re election in the Central African nation.

Mr Modeste Bahati Lukwebo head of the audit board of the National Assembly's economic and financial committee, said Mines Minister Mr Martin Kabwelulu ordered the sale of state mining company Sodimico's 30% stake in Frontier and Lonshi mines to Fortune Ahead, a Hong Kongregistered shell company.

Mr Lukwebo said that they sold it for a price of $30 million, which was imposed on the CEO of Sodimico. The order was given by the minister of mines. The USD 30 million price tag would be just over 6% of the estimated market value of the stake.

He said that an expert valuation done by the government last year put the stake's value at a much higher USD 900 million meaning it was sold at just over 3% of the value.

Other industry sources said the actual value of the asset given the legal risk involved, is much lower. The two mines at the center of the sale were previously part owned by Canadian miner First Quantum until both were confiscated last year, passing back to Sodimico before then being transferred into the hands of Sodifor. First Quantum is still contesting the removal of the licenses in court.

(Sourced from Reuters)