The $1.4 billion bid made by the Chinese defence and industrial giant in June stalled after Congo state miner Gecamines submitted its own unsolicited bid for the Chemaf assets, deepening a standoff that has been complicated by US officials lobbying against China's grip on the mineral-rich central African Copperbelt.

Norinco has now proposed that the Democratic Republic of the Congo increase its interest in Chemaf's Mutoshi and Etoile mines to as much as 15% from 5% currently - at no additional cost - subject to negotiations, said the sources, who asked to remain anonymous.

Chemaf, a long-time partner of commodities trader Trafigura, made the offer on Norinco's behalf to Congo's government last month and it has been under discussion since then, the sources added.

Norinco informed the Congolese government it is flexible on the future shareholding structure as long as it keeps a majority interest, the sources said.
The Chinese company did not respond to emailed questions.

The sources said Norinco also offered Congo a share of the metal produced by Chemaf proportionate to its shareholding, which the government could sell, in a deal similar to one Gecamines has with China's CMOC.

Norinco already owns the Comica and Lamikal mines in Congo.

It offered about $900 million for Chemaf's assets, including settling debts, and pledged an additional $500 million to complete the Etoile and Mutoshi expansion projects, the sources said.

Chemaf declined to comment.

--Reuters--