UPDATE 4-DR Congo mining review to finish Sept. 30

(Adds comment from Lundin Mining)

By Joe Bavier

KINSHASA, Aug 28 (Reuters) - The Democratic Republic of Congo's review of all its mining contracts will finish on Sept. 30, Deputy Mines Minister Victor Kasongo said on Thursday.

Companies who have signed deals in the copper, tin and cobalt-rich central African country may have to cede much greater ownership to state-owned miner Gecamines, with the flagship project Tenke earmarked for increased national involvement.

"By 30 September we will have the conclusion," Kasongo told Reuters. "We will have completed the review process."

The review, which started last year, covers 61 contracts signed with mining firms including majors such as Freeport-McMoRan (FCX.N) and AnglogoldAshanti (ANGJ.J).

Firms whose contracts are not approved will be able to renegotiate terms with the government, he said.

"Today we are writing to companies to organise negotiations," he said.

Freeport is the majority owner of the Tenke Fungurume project, described as one of the world's richest unexploited copper and cobalt resources, and due to begin commercial production in 2009-10. Congo wants a bigger stake in this project.

"We are looking to improve the deal," Kasongo said.

State-owned mining firm Gecamines owns 12.5 percent of the project, and the state itself a smaller percentage, while Freeport owns 58 percent and Lundin Mining (LUN.TO) 25 percent.

"We are asking to go back to the conditions of the original public offering," said Gaby Matshafu, Deputy Chief of Staff of the mines ministry, and part of the review commission.

Under those conditions, Gecamines held 45 percent of the project, he said.

Lundin acquired its share in the project when it bought Tenke Mining last year, while majority owner Freeport is responsible for 70 percent of the project's funding.

"We haven't yet received a response from Freeport," Matshafu said.

Freeport McMoRan said it was discussing contract changes suggested in February, including the government's stake in the project.

"Tenke ... is currently working cooperatively with the government to resolve these matters while continuing with project development activities," a Freeport spokesman said.

Lundin said it was not aware of any decision taken by the review commission in Kinshasa.

"The company has received no official notification of any change in government attitude," it said in a statment.

RED LIGHT, GREEN LIGHT

Of the 61 contracts, 14 are classed as "green," meaning acceptable, 26 are "orange" which require agreement on some points, and 21 are "red" which face cancellation, Kasongo said, without specifying which contracts fell into which category.

Key to the outcome of the review is whether firms have submitted a feasibility study covering their project.

Those that have not will have a maximum of 18 months to present a study, or face losing their rights to minerals.

Congo was a major producer of industrial metals before its infrastructure was ruined by decades of misrule by late dictator Mobuto Seke Soko, and a 1998-2003 war.

As metals prices have risen in the past five years, it has become a popular destination for mining firms, attracted by the country's rich mineral deposits, and forecasts that demand for metals, especially from China, will remain strong for years.

Other firms active in the country include BHP Billiton (BLT.L)(BHP.AX), OM Group (OMG.N) and Camec CFM.L, which said it cleared the mining review in March this year.

(Additional reporting by Euan Rocha in New York; Writing by Daniel Magnowski; editing by Sharon Lindores)